Cardano Holds 200 MA For First Time in 2 Months

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-ADA revived 35% off its low set a few weeks back
-Price has finally cleared mid term downtrend
-RSI is sitting coiled awaiting a bullish break

Cardano has been holding the $1.00 mark for many months now as bulls refuse to let it trade below. This has shown great strength for Cardano as it still holds over 4000% of gains since last year. Over the past few weeks the crypto market found at local bottom and ADA is up nearly 35% since. This is a decent revival but using data from other coins performance, ADA should be soon ready for a larger pump above $1.40.

While looking at the lowest major support zone from $0.98-$1.03, we can see how price has bounced off this zone twice. This is considered a double bottom and confirms a bottom is surely in for some time. Just over the last day Cardano has finally cleared over its mid term trend line and has since held. This is a great sign as price was stuck under it for nearly 2 months. Continuing to hold over this mark will likely set ADA up for a run past $1.40.

Just yesterday, ADA held the 200MA as support for the first time in over 2 months. This shows the trend shift is underway after months of downtrending. At the time of writing, price is sitting just above the minor support zone of $1.34. In the case bears take control and push ADA below this value, price will find support at its 200MA which is also met with a major support of $1.27. Anything below these two marks will likely trigger another cascade of selling.

While we view the relative strength index, we can see a large bullish flag has been forming. Once the strength can break over the top trend, we can expect a push to overbought territory which will likely be coupled with a price surge to the first given target. The MACD is consolidating tight above the 0 value which is a good sign that bulls are getting ready for another bullish push.

ADA Intraday Analysis

Spot rate: $1.36
Trend: Bullish
Volatility: Medium
Support: $1.34
Resistance: $1.38

Penafian

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