• ADA is stuck at a critical price level, with Bollinger Bands suggesting a breakout move is imminent.
• Bulls have been able to hold on to the support level for over a week and Bitcoin’s [BTC] rally above $29k could provide the needed impulse.
• Market speculators are uncertain of which direction the breakout will go and another jump in BTC’s price could serve as the catalyst.
ADA Stuck at Key Support
Cardano [ADA] has remained stuck at a critical price level, with Bollinger Bands indicating that a breakout move is imminent. Buyers have propped up prices at this key support level, with funding rates remaining positive. Despite this, bulls haven’t seized the opportunity and prices remain stagnant.
Bulls Awaiting Signals
Bitcoin [BTC] recently rallied above $29k, potentially providing an impulse for ADA bulls. However, speculators are still uncertain of which direction the breakout will go – whether it be bullish or bearish. Open Interest data in the futures market has fluctuated between $110 million and $120 million while Relative Strength Index (RSI) and Chaikin Money Flow (CMF) also show neutrality amongst buyers and sellers.
Bullish Breakout Possible?
Should there be a bullish breakout, ADA could head towards the $0.35-$0.37 price region, with resistance at $0.376 being a key hurdle to cross for further gains. On the other hand, should bears prevail, they may target the $0.25-$0.26 price region instead.
Current Price Level
At press time, Cardano [ADA] was trading around its current support level of $0.3 after having rejected prices at around $0