Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Bulls failed to break past the $0.3760 resistance level at the first attempt.
- ADA remained stuck in a tight price range.
Cardano’s [ADA] bearish swing came to a brief halt with bulls rallying from the $0.3505 support level. An earlier report highlighted the significant bearish sentiment around ADA and the importance of the $0.3505 support level for bulls.
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Bitcoin’s [BTC] short-term push to $27k could determine ADA’s next move. With the altcoin trading in a tight range, can bulls push on for more gains, or will bears force another price breakdown?
Tug of war between bulls and bears
ADA bears and bulls have been stuck in a support and resistance match-up over the past month. ADA’s bearish swing from the $0.4850 resistance broke past the $0.4161 level before finding support at the $0.3760 level. The $0.4161 level, now acting as a resistance level, stopped the bullish rally from the $0.3760 level on 1 May.
A re-test of the $0.3760 support and the bullish order block just above it saw prices sink further. Price once again found support at the key $0.3505 level on 11 May. Bulls rallied from this level again but the $0.3760 support now flipped to resistance has proven too hard to surpass.
As of press time, the RSI hovered under the neutral 50 mark with the OBV also in decline.
Consequently, going by ADA’s recent price action and history, a re-test of the $0.3505 level will see prices sink lower. A daily candle close below this support level could spur bears to target the March low of $0.3140.
Alternatively, prices could trade higher, if bulls clear the $0.3760 resistance level and close above it. This will see buyers push for the April highs of $0.4161 or $0.4580.
How much are 1,10,100 ADAs worth today?
ADA gives mixed signals in the futures market
Buyers and sellers in the futures markets continued to weigh up their next moves carefully. The Open Interest (OI) data from Coinalyze showed that it remained in a perpetual decline, despite the short-term bullish rally.
However, the funding rates remained positive to hint at a steady demand for ADA.