Cardano's ADA Token Investors Find Hope in Golden Cross Indicator as Vital Support Levels Remain Intact
Cardano (ADA) Holds Steady Amid Mixed Signals
Cardano (ADA), the seventh-largest cryptocurrency by market capitalization, is currently trading at $0.876, as traders keep a close eye on the digital asset's next move. The cryptocurrency's daily trading volume stands at $1.28 billion.
Recent technical analysis suggests a mixed outlook for ADA. A rejection near $0.923 formed a bearish engulfing candle, potentially signaling a short-term correction. However, the ability to hold key support between $0.85 and $0.87 will likely determine the success of the bullish scenario.
The Relative Strength Index (RSI) for Cardano is at 44, indicating that ADA may be oversold and due for a bounce. This is further supported by the consolidation pattern, which often signals accumulation phases that precede stronger moves.
A critical support zone for Cardano is between $0.85-$0.87. A decisive break above $0.90 could reignite bullish momentum and put ADA back on track toward the psychological $1 level. Conversely, a breakdown below $0.85 risks exposing deeper support zones at $0.82 and $0.78.
Interestingly, the Network Realized Profit/Loss metric for Cardano has reached its highest level since July, indicating many investors are taking profits. This could be a temporary setback, as multiple technical signals stack up in favour of the bulls, positioning Cardano for potential upside.
Fundamental strength for Cardano has also been boosted by recent integrations. Openbank, Europe's largest digital bank under Santander, integrated Cardano for 2 million customers, providing a significant boost to institutional adoption. Another institution with 15 million customers also gained access to ADA after the integration.
Additionally, a golden cross has formed on the daily chart for Cardano, potentially signaling bullish momentum. However, ADA is currently struggling beneath the 50-EMA at $0.8819.
Over $90 million in shorts are at risk above $0.97 for Cardano, potentially setting up a short squeeze. This could lead to a rapid increase in price as short sellers are forced to buy back their positions to cover their losses.
Despite recent weakness, the overall trend of ADA's daily chart continues to trend upward, suggesting room for optimism. However, $6.7 million net outflow from exchanges on September 17 indicates investor hesitation, which could impact the short-term price action of ADA.
In conclusion, while Cardano's price action is showing signs of both bullish and bearish sentiment, the overall outlook remains positive, with multiple technical and fundamental indicators pointing towards potential upside. Traders should continue to monitor the key support and resistance levels, as well as the overall market sentiment, to make informed decisions.
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