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Cardano’s Pullback Short-Lived, Fresh Rally Underway For ADA?

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Cardano (ADA) made a strong comeback with Bulls Intervene to reverse the recent decline and drive a new rally. After a brief period of downward pressure, the cryptocurrency is gaining momentum again, sparking renewed optimism among investors. Merchants And investors.

With positive momentum building, Cardano is showing signs of further upward movement, putting it in position for sustained gains towards the $0.4233 mark. The question now is whether the bulls will be able to sustain this rally and push ADA towards new highs.

As the rally progresses, this article aims to analyze the recent price action of ADA, focusing on how the bulls can reverse the pullback and spark a new wave of the rally. pool. He will check the current rising Trajectory, evaluating key support and resistance levels, and exploring the possibility of a sustained upward movement in the near term.

The Return of Bullish Momentum: How Cardano Reversed the Pullback

On the 4-hour chart, Cardano has turned to the upside, and is currently holding its position above the 100-day simple moving average (SMA) that is printing several numbers. green Candlesticks. As long as the price remains above this level, the bulls are likely to maintain their control, with the possibility of more Gains If the uptrend continues.

ADA maintains its strength above the 100-day simple moving average | Source: ADAUSDT Tradingview.com

Analysis of the RSI on the 4-hour frame reveals a notable increase, rising to 63% after previously falling to 53%. This increase reflects increasing upward momentum, indicating that buying pressure is gaining strength in the market. While the current level is still below the overbought zone, an upward shift in the RSI indicates increased demand and could pave the way for further upside.

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Also, the daily chart shows that Cardano is actively trying to break above the 100-day simple moving average, which is a key resistance level. Successfully crossing this Simple Moving Average (SMA) can signal a stronger optimistic trend and boost investor confidence, attracting more buyers. If ADA clears this resistance, it could lead to a shift in market sentiment and further upward movement.

Cardano
ADA’s upward move is contingent on a break above the 100-day SMA | Source: ADAUSDT Tradingview.com

The RSI on the daily chart is currently at 53%, indicating an upward trend for ADA, as it is above the critical threshold of 50%. This usually indicates that buying pressure outweighs selling pressure, reflecting strong momentum and traders becoming more optimistic about the ADA price. possible.

Support and resistance levels to watch in the coming days

On the upside, the $0.4233 resistance level is crucial as a success Go Above this point could indicate a stronger uptrend and attract more buying interest. If ADA breaks above $0.4233, the next important resistance to watch will be at $0.5229. Clearing this level enhances bullish pressure, which could lead to higher price targets as market sentiment turns positive.

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Meanwhile, on DownsideThe first support level to watch if the bulls cannot maintain their momentum is $0.3389. A break below this level may lead to additional losses, which may push the price towards the next level supports The level is at $0.2388, which may also extend to lower support areas if selling pressure continues.

Cardano
ADA is trading at $0.35 on the 1D chart | Source: ADAUSDT Tradingview.com

Featured image from iStock, chart from Tradingview.com

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