Bullish sentiment in Cardano (ADA) traders were reawakened after a rally from the $0.6822 support level. The surge could be the mark of a turning point and optimism is building around the idea that ADA can, in fact, continue its trajectory up.
Now, critical resistance levels become the new focus for outstanding momentum gained by the cryptocurrency. ADA is currently making its way towards the $0.8119 resistance level, towards which it’s gaining more and more strength in buying pressure.
This is also reinforced by the fact that its position above the 100 day Simple Moving Average (SMA) on the 4 hour chart which makes its position look like a solid base for further gains. If $0.8121 is broken, we could see a rally to the $1.26 resistance marking a large price move.
Cardano Bullish RSI Signals Gains
The Relative Strength Index (RSI) points to gains in market strength from 57% to 70% overbought. Strong demand and another leg of continued upward momentum would be indicated by a move above this level.
ADA shows impressive bullish signs on the daily chart. In the case of the RSI reading of 80%, the market confidence is at its peak and it’s accompanied with a formation of a bullish candlestick pattern. Even though the RSI is above 70% it also shows strong buying activity and possible market optimism.
Though there are such positive indicators, there are still challenges. Failure to close above the $0.8119 resistance area may result in pullbacks or price consolidation and a closer eye to lower support levels.
Cardano’s resurgence shows the return to the market and becomes a focus point for investors. It will be the cryptocurrency’s ability to push past upcoming resistance levels which will determine its hold on its bull run. If ADA breaks the important key thresholds, it could see a move that shows strength upward.
If Cardano maintains its bullish stoke and stays ahead, it will make for a good performance in the market, but if it faces obstacles on its way up, it will result in a performance that the market wouldn’t appreciate. It is here that traders remain optimistic about its trajectory.
