ADA has soared by more than 8% in the past 24 hours and is about to retest the significant resistance at $1.
ADA ADA $0.68 24h volatility: 1.9% Market cap: $24.64 B Vol. 24h: $619.31 M , the native token of the layer 1 blockchain network Cardano, has soared a significant 8.63% in the past 24 hours, trading at $0.9555 after a substantial price decline on Monday, when the cryptocurrency printed a daily low of $0.873. Notably, a prominent analyst highlighted that there is no need to fear until the altcoin trades above $0.8.
In a post on X, AMCrypto said that there is no need to panic as long as the prominent support at $0.8 holds. The analyst highlighted that altcoins retesting their support levels during bullish cycles are a positive sign. The reason is that such retests validate strong buyer interest at those levels, $0.8 in this case.
Additionally, such pullbacks to support levels offer traders and investors an opportunity to accumulate positions at favorable prices before the next leg of the rally. It is important to note that ADA’s nearest resistance stands at $1, and in the past year, the cryptocurrency soared as high as $1.32 but failed to make a move toward $2. The altcoin has retested $1 numerous times in the past, failing to break above it and then retesting $0.8 support.
Meanwhile, as per CoinMarketCap data, ADA has shot up 92.39% in the past month and is just 69% down from its all-time high of $3.10 witnessed over three years ago. With a market cap of $33.56 billion, the cryptocurrency sits at the 9th position in the list of the largest cryptocurrencies. Also, about 16.36% of the wallets have between $1,000 and $100,000 in ADA, while 83.19% have less than $1,000.
Bullish Predictions for ADA
Despite ADA’s price crash over the past two days, analyst Carl Moon said that the cryptocurrency is poised for further gains as well. The altcoin’s price action has formed a bullish pennant, and if the $0.8 support holds, we could see ADA breaking above $1.30 in the coming days, said Carl Moon.
Meanwhile, the ADA price analysis based on the daily time frame shows that the Relative Strength Index (RSI) for the altcoin reads a value of 45.76, which means that the bears are currently in charge of the digital asset’s price action. However, the gradient of the line suggests a massive spike in demand for Cardano.
The MACD indicator confirmed a bearish divergence for the altcoin a few days ago, but now the MACD line (blue) and signal line (red) are coming closer, suggesting increasing possibilities of a bullish divergence in the near future.
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