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

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.

Transform Hundreds Into Millions With the Magic of Memecoins – think $BONK, but bigger!🤫

The key? Getting in early, especially during the IDO phase. Get in on NuggetRush now! This innovative memecoin blends play-to-earn gaming with real-world gold mining. Join soon to take advantage of the current ICO prices!

Show more +

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.

You may also be interested in:

Check NuggetRush ($NUGX)

Sponsored: Invest Responsibly, Do Your Own Research.
Being in its ICO stage, NuggetRush offers a prime opportunity for early investors to get in at potentially lower prices
A unique play-to-earn gaming platform in the memecoin market
The platform combines artisanal and gold mining with cryptocurrencies in an unusual gaming context, offering a distinctive and immersive experience
Fosters a strong community by encouraging physical meetups among members
NFT Integration with Prominent Characters
intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitrage still works like a charm, if you do it right! Check out Alphador, leading crypto arbitrage bot to learn the best way of doing it.

Tags:

Temitope Olatunji
Temitope Olatunji

Temitope is a seasoned writer with over four years of experience. He specializes in Web3 and FinTech topics and enjoys creating content in these areas. He holds both a bachelor's and master's degree in Linguistics. When not writing, he trades forex and plays video games.

CaptainAltcoin
Logo