The market structure over longer time frames remained firmly positive.
A significant area of resistance is between $0.4 and $0.42, although ADA is expected to move higher.
Over the previous three days, Cardano [ADA] has risen from $0.38 to the $0.4 level of resistance. On the one-day period, its technical structure was still positive; a rise over $0.4 and ensuing retest may represent a buying opportunity.
Pumps into the $0.42 range will be used to make money.
The support on the daily market structure was firmly shattered by a surge over $0.31 and a subsequent retest of $0.32. The RSI kept falling lower, showing decreased bullish momentum, but the bias remained optimistic.
This occurred as a result of ADA running into a strong resistance band at around $0.4. It is a significant horizontal level with a longer time horizon. May to October 2022 had support at the $0.425 level. In October and November, the $0.4 and $0.376 levels underneath it served as significant support and resistance levels.
ADA bulls who are late to the party must thus acknowledge that the advance upward’s main thrust is over. Lower period scalps between $0.4 and $0.42 are conceivable. Longer-term purchasers must be prepared to close the transaction in case the price drops below $0.4, so they can wait for the flip of $0.42 to support before bidding.
The following high period levels to watch out for are $0.42, $0.51, and $0.6.
In February, sentiment has been uninspired.
The MVRV ratio (30-day) also decreased, although there was no notable decline in pricing. This suggested that selling pressure would soon ease since short-term investors may have completed taking their profits.
The larger price fluctuation had little effect on development activities, which should excite long-term holders. When ADA pulled back from $0.413, the age-consumed metric quickly increased.