Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- ADA found support at the $0.3 level to counter selling pressure.
- Rising average coin age would allow bulls to build on key level defenses.
Cardano [ADA] benefited from upbeat market sentiment following a positive ruling for Ripple in the US Securities Exchange Commission case [SEC]. ADA had been labeled a security in another SEC lawsuit, so Ripple’s [XRP] classification as non-security was good news for the altcoin.
Read Cardanos [ADA] Price Forecast 2023-24
This led ADA to post a 30% gain on July 13. However, it failed to cross the price hurdle at the $0.3760 resistance level. As a result, prices fell as fast as they rose.
As of this writing, the bulls had stopped selling pressure at the $0.3 level and a look south showed that this level has been critical for buyers in the past.
Can Bulls Start Another Rally From the $0.3 Level?
Source: ADA/USDT on trade view
ADA bulls have found the $0.3035 support level to be a good safe haven to ward off bearish momentum. A look at the price chart on the 12-hour time frame revealed that bulls had used the level as a springboard for a significant bullish rally in March.
The rally turned ADA bullish, taking it to a yearly high of $0.4622. ADA’s recent move above $0.3035 on July 13 was noteworthy, as it heralded quite a rebound after prices hit a year-to-date low of $0.2395. However, the $0.3760 price rejection limited further gains and ushered in another wave of selling pressure.
Bulls revisited the $0.3 level for support with notable success. The indicators on the chart also reflected the possibility that the level could serve as the basis for another rebound. The Relative Strength Index (RSI) fell to the neutral 50 but reversed sharply to highlight a new influx of buying pressure.
A positive reading of +0.09 on the Chaikin Money Flow (CMF) also showed the presence of capital inflows despite falling from the high of +0.26.
A significant bullish charge from this level presents good buying opportunities with take profit levels at the $0.3760 level. If buyers fail to follow through, sellers could re-enter the market with a low of $0.2395 in sight.
Average coin age is rising
Source: Sentiment
Dates from Sanitation highlighted the upward slope of the average coin age of 90 days. This indicated a short-term accumulation of ADA. If the trend continues, bulls can expect a strong rebound from the $0.3 level.
How much are 1,10,100 ADAs worth today?
Similarly, the 30d Market Value to Realized Value (MVRV) ratio stood at 1.56% at the time of writing. This was a signal that short-term holders were starting to make profits with the possibility of more profit ahead.
Overall, the signals look good for a near-term bullish rally. Nevertheless, traders should keep an eye on Bitcoin’s price action as it could affect ADA’s price movement.
