Can the price of Cardano (ADA) break above this line?
Cardano (ADA) has been trading below its downtrend line since May 20. Currently priced at $0.37, the altcoin's price has declined by 24% during this period.
However, ADA has experienced a revival in interest over the past week, pushing the price closer to the trend line. The technical setup on the daily chart indicates a potential breakout above this resistance level.
Cardano made a trip to the trend line
The value of ADA has increased by 8% in the last seven days, with the growth of the broader market, reflected in the increase of 5% in the capitalization of the global cryptocurrency market during the same period. The coin's increasing on-balance-volume (OBV) suggests that strong market demand has fueled ADA's price growth.
The OBV indicator measures buying and selling pressure; When it rises, it indicates that buying pressure exceeds selling, indicating a bullish trend. At the time of publication, ADA's OBV has reached 42.54 billion.
Additionally, ADA's positive Elder-Ray index further supports the bullish trend. Seven days ago, the index posted positive values in a row. Currently, the ADA Elder-Ray index is above zero at 0.0088.
The Elder-Ray index measures the balance of power between buyers and sellers. A positive value indicates that buyers are in control, which indicates strong bullishness in the market.
Read more: Cardano (ADA) Price Prediction 2024/2025/2030
Since August 25, the ADA Awesome Oscillator (AO) has been showing upward trending green histogram bars. This indicator tracks the speed of the market. When the AO shows green, upward facing bars, it usually indicates that the swing is above the zero line, confirming bullish momentum in the market.
ADA Price Forecast: Demand will push the coin above the trend line
Bullish sentiment remains strong among ADA futures traders, as indicated by the positive funding volume. As of this writing, the altcoin funding rate is 0.0023%.
Funding prices in perpetual futures contracts help keep the contract price close to the spot price. A positive rate indicates demand for long positions rather than short ones, indicating that more traders are betting on price rallies rather than declines.
If ADA continues to see stock from market participants, it may break above the downtrend line and reach $0.39.
Read more: Who is Cardano Founder Charles Hoskinson?
However, if the market trend changes and sales increase, the price of the altcoin may drop to $0.27.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
