Cardano is one of the tokens that has lost the user’s attention because the price continues to act within a predetermined range. In the meantime it has proven to be a potential candidate for a spot ETF. Despite the slow price promotion, Cardano activity has increased considerably, with the number of daily active addresses exceeding 50,000. In addition, whales recently entered the network and bought more than 100 million ADA tokens within a few days.
The ADA price has just risen above $ 1, because the market dynamics has shifted somewhat in favor of the bulls. While the Bitcoin price remains above $ 105,000, other altcoins such as Cardano have won at Momentum because they rise above the crucial resistance. However, the price has not constantly succeeded in exceeding the $ 1, which can evoke some worries about the next price promotion. In the meantime, the price has reached the edge of a consolidation, which indicates that there could be a potential outbreak on the horizon.
As can be seen in the graph above, the ADA has reached the top of the decisive symmetrical triangle while testing the support, which is the crucial phase of the rally. Now that the price has reached support, a recovery is of great importance to maintain the bullish momentum. Moreover, the volume is also confronted with extreme pressure, which results in huge bullish signals for the crypto. In the meantime, the technical factors that the local low point have reached are about to cause a recovery.
The Chaikin money flow, which is used to measure the cash flow over the platform, has fallen seriously below 0, which indicates a huge weakness within the market. However, the levels showed a bullish divergence, indicating a slight increase in power. Moreover, the RSI acts around the average range, which indicates that the bulls are waiting for the right time to come in. That is why the Cardano price acts in a crucial phase and therefore a daily closure above $ 1,020 could cause a new bullish movement to $ 1.01.
However, breaking the decisive triangle can only release the road for an increase in the ADA price above $ 1.2, which could break through the bearish range and reach new highlights.
