Cardano (ADA) bounced off the strong support at $0.875 and reached the MA 50 ($0.974) on April 20. This suggests that the sentiment remains positive and traders are buying on dips. According to Santiment, crowd sentiment toward ADA currently sits at the most positive levels since mid-November. ADA is currently tackling the MA 50 barrier, trading down 1.31% at $0.938 at the time of publication. As shared by Cardano creator, Charles Hoskinson, the Cardano NFT collection, ChilledKong8885 with Android Body (0.08%) went for 135,000 ADA ($128,524.16) in a record sale. The number of ADA wallets has increased by 100,000 within a month, with the total figure standing at 3.2 million as of April 19. Activity on the Cardano blockchain is starting to heat up, with 400 new projects in the works. Presently, nearly 900 projects are building on Cardano.
Key Levels
Resistance Levels: $1.250, $1.180, $1.075
Support Levels: $0.921, $0.830, $0.746
ADA/USD Daily ChartAfter a continuous decline beneath the $1.25 horizontal resistance level in early April, ADA bounced slightly from the $0.875 lows of Apr. 18. The RSI has risen marginally to avoid a descent to oversold levels, but there is still a lot of room to cover. If the ADA price breaks through the MA 50 barrier at $0.98, the focus will shift towards the MA 200 at $1.39.
If the bulls break through these levels, they might initially aim for the $1.075 level, which is just ahead of the $1.25 April 2022 highs. If selling pressures revive, failing to pivot at the $0.921 or $0.830 level could quickly send the price down to the $0.746 floor. A possible double bottom formation near here could signal the beginnings of a bullish reversal.
ADA/USD 4-Hour ChartADA currently targets to flip the 4-hour MA 50 trading at $0.938. If buyers push the pair above the $0.950 limiting boundary, the MA 200 at a $1.050 high could restrict additional gains, allowing the pair to return to the April high of $1.247. The short-term oscillators indicate a directional momentum that is mixed.
If sellers acquire traction, immediate downside constrictions could emerge from the $0.921 level, ahead of nearby support at $0.830. In a nutshell, ADA’s short-term outlook is neutral to slightly bearish. This may appear to favor dip-buying while waiting for the first break, either above $1.00 or below $0.921, to identify the following move.
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