Cardano price holds near a three-month high amid a risk on market sentiment. BTC rose 0.40%, and ETC gained more than 3%
Cardano prices advance modestly on Thursday. The eighth-largest cryptocurrency paused the recent gains that were initiated at the beginning of the month of January, buoyed by renewed optimism in the market. A broader weakness dollar added the attractiveness for the riskier assets. Further, as the fears of FTX collapse and higher interest rates subside, the price rebounds sharply.
As of press time, ADA/USD is reading at $0.38, up 1.58% for the day. As per Coinmarketcap, the 24-hour trading volume rose by 6.37% to $488,710,237. A rise in volume with a rise in price is a bullish sign.
On the 4-hour chart below, the rebound strong rebound that has lifted Cardano to levels last tested in October last year has driven the Relative Strength Index (RSI) into the overbought zone. Another momentum oscillator, the Moving Average Convergence Divergence (MACD) hold above the midline with increasing bullish momentum.
After reaching the horizontal resistance near $0.38, the price retreat a little bit as can be seen on the daily chart.
The descending trend line from the high of $0.58 made on August 17, acts as the upside barricade for the bulls. A breach of the horizontal resistance barricade would see another cycle of the rally. On moving higher, the bulls could test $0.45, an appreciation of 18% from the current levels
On the flip side, a correction is expected amid overbought momentum oscillators. A renewed selling pressure could drag the price to the previous day’s low of $0.34. Next, the bearish trend line could be tested near $0.32.