Cardano (ADA) has experienced a slight recovery recently, benefitting from the overall positive sentiment in the market, pushing its price above $0.70 once again.
This increase has sparked optimism among investors, raising the possibility of Cardano breaking through the $0.80 mark if the bullish trend remains strong, potentially indicating a significant change in its price direction.
The recent uptick in Cardano's price comes after technical indicators hinted at a potential turnaround, particularly following the formation of a Death Cross. About sixteen days ago, the 200-day Exponential Moving Average (EMA) crossed below the 50-day EMA, a bearish signal known as a Death Cross in technical analysis.
Nonetheless, with ADA’s price rising above $0.70 and a sustained bullish trend, there is potential for it to surpass $0.80. If this reversal occurs before April, it would be the shortest time span for a Death Cross in Cardano's history, in contrast to the 56-day period observed between March and May 2020.
On a larger scale, Cardano's positive momentum is supported by various technical indicators, particularly the Relative Strength Index (RSI). Currently above the neutral line at 50.0, the RSI is at a 7-week high, indicating growing investor confidence and increased buying pressure. This upward trend in the RSI reflects a positive market sentiment towards ADA, suggesting that Cardano is gaining momentum after a period of stagnation.
With a favorable RSI reading, Cardano seems to be benefiting from renewed investor interest, potentially sustaining its price gains in the short term. If the bullish momentum continues, Cardano might witness substantial price increases, pushing towards new resistance levels and offering trading opportunities.
In terms of price movement, Cardano is currently trading at $0.70, showing a 13% increase in the past 24 hours. If this bullish trend persists, ADA is likely to face resistance around $0.77, a historical consolidation zone. Breaking past $0.77 could indicate a move towards $0.85.
A breach of $0.77 would strengthen Cardano's upward momentum, potentially driving its price even higher, while surpassing $0.80 would signal a resumption of its long-term bullish trend.
Nevertheless, if Cardano fails to sustain its current price levels and falls below $0.70 to around $0.63, it could erase recent gains and lead to further declines, casting doubt on the sustainability of the positive momentum and possibly reinforcing a bearish trend.