The support of Cardano's level of 0.54 has been able to ensure that it is a friendly price floor where the buyers have been accumulating in the current trading sessions.
A break above the resistance of $0.61 can prompt an upsurge to the 50-day SMA off $0.67 if market strength gathers momentum.
Lack of support at the level of $0.54 may lead to a possible downward shift to the value of 0.50, and a breach may indicate a new decline into the vicinity of 0.40.
Cardano (ADA) has been exchanging hands in a congested range of between 0.529 and 0.611 since rebounding on June 22 from low-level volumes at 0.51. The price movement is seen after a rebound on July 2, when ADA significantly rebounded at the soft spot of the price action at the level of 0.54 US dollars and extended it to 0.611 US dollars the next day.
A recent trend presents the amount of $0.54 as a fundamental accumulation vicinity. On-chain analyst Ali pointed out this support as a possible entry point, stating that the buyers generally show interest towards such a point. A general market is unsure, and the fact that ADA has stayed above this price floor has attracted attention.
Accumulation Zone Attracts Traders' Interest
The powerful level that the market observers consider to be a level of steady demand is the $0.54 level. In the past, ADA has been struggling to fall below this mark. Analysts are of the opinion that when ADA retests this level, it will attract buying pressures by traders who will want to gain entry at a low-risk entry point.
https://twitter.com/ali_charts/status/1941679995744600313
This thesis has been backed so far by the market response. Following the recent uprush, ADA has stalled at around the mark of 0.585, registering a 2.19% increase in the past 24 hours.
Wider Market Tone Holds Back
The entire crypto market is still pressured by the macroeconomic considerations and the dreary performance of the leading cryptocurrency. Nevertheless, these headwinds have seen more than 71 million short positions flow out of the crypto market, temporarily lifting prices, including ADA.
Nevertheless, the traders of the altcoins remain cautious. Any inability to maintain the previous conquest of $0.54 can result in a decline in the level of the previous loss by sellers, i.e., to the level of $0.50. A breach of $0.50 may constitute a descending triangle, which promises to bring the price to $0.40.
Resistance and Levels to Watch
In case buyers exert power and send ADA higher than the $0.61 price point, traders should expect the move towards the 50-day simple moving average of about $0.67. Any additional upswing that carries on would trigger the 200-day SMA at $0.758. Expectations are that these will be the levels that will give Cardano its next major move.
At least, so far, the question is whether ADA can manage to stay above the $0.54 level and overcome resistance against 0.61, which is to determine the mood of the further sessions.
The post Cardano ADA Eyes Breakout as Price Holds Above Crucial $0.54 Support appears on Coin Futura. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.
