Cardano (ADA) price is trading in the range between the 55-day Simple Moving Average (SMA) and the 200-day SMA. The Relative Strength Index (RSI) indicates that the bulls are slowly but surely buying ADA, paving the way for a bullish breakout in the near future. A breakout above the 55-day SMA will provide further upside action in the near term and pave the way for all-time highs. Here are the details.
Cardano price sees volume gain on the buy side and gains momentum for a breakout
Since October, Cardano price has been trading between $2.40 and $1.80, ranging between the 55-day SMA on the upside and the 200-day SMA on the downside. With both SMAs moving towards each other, ADA is consolidating and looks poised for a breakout either way. At this point, a bullish breakout can be expected to emerge with a recovery in the RSI pointing to general buying.
A break above the 55-day SMA will attract more buyers who have stepped aside and are waiting to enter the uptrend. With this move, the 55-day average can be expected to deviate from its downward trajectory and fall parallel to the 200-day SMA, meaning both will rise. This will indicate that the bulls’ uptrend is still very lively and will result in a large increase in buying volume.
ADA price may also see the bulls wait for a retest near $1.89, providing the final entry point for buyers to push the RSI above 50.. With this, the bulls can start to take control of the ADA price action and start the uptrend again with the initial target of $2.40. It is also useful to consider some positive headwinds arising from risk in the global markets, which will accelerate the upward trend in Cardano price.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.