Cardano faces downward pressure but aims for a price rebound by defending a crucial price range where a substantial amount of ADA is held.
Points
- ADA down 4.42% in the last 24 hours.
- 4.79 billion ADA held in a crucial price range.
- Bulls need to defend this range to prevent further declines.
- RSI in the positive zone favors potential price rebound.
Cardano, the tenth-largest cryptocurrency by market cap, is grappling with downward pressure in line with the broader cryptocurrency market. At the time of writing, ADA has dropped 4.42% in the last 24 hours, trading at $0.421. Central to Cardano’s potential price rebound is a key price range where 4.79 billion ADA are held.
According to data from IntoTheBlock, 4.79 billion ADA were acquired by 223,370 addresses within the price range of $0.000041 to $0.000045, at an average price of $0.000045. This area is crucial for bulls to defend to prevent further price declines. Successfully defending this range could generate buying pressure, potentially driving the price higher.
The ADA price has remained above its moving averages in recent days, suggesting indecision among traders. The Relative Strength Index （RSI） being in the positive zone also benefits the bulls, who might push for a price rebound. If successful, buyers could aim to push the price towards the overhead resistance of $0.51. Conversely, if the price drops below the moving averages, it would signal that bears have not given up, potentially resulting in range-bound action for some time.
解説
- Price Defense: The defense of the 4.79 billion ADA held within a specific price range is critical for Cardano’s price stability. If bulls can maintain this level, it may prevent further declines and encourage buying pressure.
- Relative Strength Index （RSI）: The RSI is a momentum indicator that measures the speed and change of price movements. An RSI in the positive zone indicates potential for a price rebound, as it shows bullish momentum.
- Moving Averages: Staying above moving averages suggests indecision among traders but also provides a support level. If ADA remains above these averages, it could signal potential for upward movement.
- Market Sentiment: The overall sentiment in the cryptocurrency market influences ADA’s price action. As part of a larger trend, ADA’s movements are affected by the performance of other cryptocurrencies and market conditions.