• Cardano [ADA] saw aggressive buying at the $0.3020 lows, pushing its price past key resistances as Bitcoin [BTC] surged to the $26k area.
• BTC’s price action will determine ADA’s price direction in the coming days/weeks, with a bullish breakout possible if BTC maintains the $24k level and surges.
• Bulls had slight leverage based on ADA’s long/short ratio, but bears and potential short-sellers should keep an eye out for a sharp retracement of BTC towards $20k.
Cardano [ADA] Price Analysis
Bullish Rebound After Recent Low
Cardano [ADA] rebounded strongly after hitting its recent low of $0.3020 on 12 March. It saw aggressive buying at these lows, pushing its price above key resistances as Bitcoin [BTC] surged to the $26k area.
Price Ceiling At $0.368
However, BTC saw a sharp rejection at $26k and was trading below $25k at press time. Similarly, ADA hit a price ceiling at $0.368 before entering a retracement that pushed it into a key range – between support levels of $0.3306 and resistance levels of $0.3466 – that it had previously broken out from during BTC’s extra rally following February’s US CPI data release.
Direction Determined By BTC Price Action
As such, BTC’s price action will determine ADA’s direction in the next few days/weeks – with possible bullish breakout if BTC maintains the current level around 24K or surpasses it; or possible intense selling pressure if ADA closes below its support at 0.3306 or lower previous low of 0.302 (with potential short-selling targets).
Bulls Have Limited Leverage In Short-Term
Bulls have some leverage according to ADA’s long/short ratio on four-hour timeframe; however bears and potential short sellers should pay attention to any sharp retracements of Bitcoin towards 20K region..
RSI & ADX Indicate Further Retracment Or Consolidation For ADA
Technical indicators such as Relative Strength Index (RSI) which pulled back from overbought territory and Average Directional Index (ADX) sloping downwards indicate further retracement or consolidation for Cardano [ADA].
Technical indicators such as Relative Strength Index (RSI) which pulled back from overbought territory and Average Directional Index (ADX) sloping downwards indicate further retracement or consolidation for Cardano [ADA].