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Conflicting Cardano (ADA) Metrics Could Stop Bulls’ Efforts To Break This Critical Resistance Level

Temitope Olatunji

February 9, 2024

X Analyst @Av_Sebastian pointed out that Cardano (ADA) has been showing signs of strength on the 4-hour chart. He believes that ADA will likely retest the $0.55 resistance level soon, which will be a critical point that determines if the price can move higher. A break above $0.55 could lead to further upside towards $0.6.

But On-Chain Metrics Indicate Weakness

However, some on-chain metrics indicate weakness for ADA currently. Over the last 24 hours, trading volume has declined by 20% even as market capitalization has only increased slightly by 1.6%. This could suggest that bullish enthusiasm and trading activity around the token is waning at the moment.

On the positive side, the price has moved above the 50-day and 200-day exponential moving averages, which could now act as support levels. The RSI is at a moderate 57, meaning bulls still have some room to drive the price upwards before becoming overextended.

So in summary, while the short-term technical outlook shows some signs of strength for ADA, longer-term on-chain signals remain mixed as to whether this bullish momentum can be sustained. The $0.55 level remains the key near-term spot to watch which could determine the next major move.

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