Cardano [ADA] Bulls Aiming for 20% Rally, Resistance at $0.3457
• Cardano [ADA] was stuck in another resistance range at press time and oscillated between $0.3145 and $0.3252.
• Bulls had the upper hand, given the RSI was in the overbought zone and OBV has increased recently.
• ADA could attempt to break above $0.3292 and retest the overhead resistance at $0.3457 in the next few days.
Cardano [ADA] has been trading in a tight range between $0.3145 and $0.3252 for the past few days. This is despite the fact that Bitcoin [BTC] rallied throughout 6 January and managed to retest $17.50K on 11 January. The rally was partly influenced by favorable macroeconomics, as the S&P 500 Index (SPX) surged from 6 January as investors remained optimistic about a further drop in Fed rates. This enthusiasm in stock markets resonated well with other asset classes, including BTC, and ADA and the rest of the altcoins also rallied.
The bulls had the upper hand in ADA, given the RSI was in the overbought zone and OBV has increased recently. This is a positive sign as it shows that there is strong buying pressure in the market, indicating that traders are bullish on the asset. As such, ADA bulls could attempt to break above $0.3292 and retest the overhead resistance at $0.3457 in the next few days. If the bulls are successful in breaking above this resistance, ADA could aim for $0.3827, a potential 20% rally.
On the other hand, if the bears manage to push ADA prices below $0.3145, it would invalidate the bullish bias. In this situation, the bears could find steady support at $0.2997, and ADA could trade within its previous mid-November and mid-December trading range of $0.2997 – $0.3292. Moreover, ADA has recorded an increased whale transaction count and development activity, which could be a sign of bullish momentum.
Overall, ADA looks poised to break past the $0.3292 resistance and test the $0.3457 resistance. If the bulls are successful in breaking above this level, ADA could rally to $0.3827, while if the bears take control of the market, the asset could fall to $0.2997.