Cardano at $0.56, here are the crucial trading levels for the coin

Cardano consolidated after the coin attempted to move higher on the one-day chart. Bitcoin extended losses as the broader market continued to show signs of weakness. The one-day chart is showing mixed signals which could also mean that the coin could be trying to head north.

In the last 24 hours, ADA gained just 1% as it was mostly consolidating. In the last week, the coin gained substantially more than 22%. Buyers in the market also tried to show strength as the coin saw a bullish presence over the past week.

If the buyers continue to stay in the market, then ADA could push and trade near the immediate resistance at $0.60. The price of ADA could fluctuate if the sellers regain strength, which could cause the bears to take over the market.

Cardano Price Analysis: One-Day Chart

Cardano was priced at $0.54 on the one-day chart | Source: ADAUSD on TradingView

ADA was trading at $0.54 at the time of writing. After soaring nearly 22% over the past week, the coin posted worldly price action. Its immediate support line was at $0.47. A drop below which could drag XRP to a low of $0.40.

The maximum overhead price for ADA was placed at $0.62 and for the bulls to regain steam, Cardano at least needs to trade above the $0.70 price mark. As the coin shows in sideways trading, a move to the upside can be anticipated. The volume of the currency traded was recorded in the green, signifying optimism.

Technical analysis

Cardano buying strength was recovering on the one-day chart | Source: ADAUSD on TradingView

The recent bloodbath in the crypto market had pushed Cardano into the oversold zone. The coin was last oversold before this in the month of December 2021. On the Relative Strength Index, the altcoin had attempted to peek above the midline.

This meant optimism. However, at press time, the Relative Strength Index noted a small drop. Despite the small drop, the altcoin was still dominated by buyers.

According to the same reading, ADA price was above the 20-SMA. A reading above the 20 SMA means that the buyers fueled the price momentum in the market.

Related Reading | Crypto Community on CoinMarketCap predicts $1 Cardano by June 30

Cardano showed a buy signal on the one-day chart | Source: ADAUSD on TradingView

As buyers returned to the market, the moving average convergence divergence also turned positive. MACD showed green signal bars as bulls resurfaced in the market. These green bars can also be interpreted as buy signals.

The incidence of buy signals in the market is also consistent with the Relative Strength Index. Chaikin Money Flow, which is an indicator that measures capital inflows and outflows, showed signs of recovery.

Although there was an increase in capital inflows, CMF showed a drop that can be linked to the fall in capital inflows at the time of writing. ADA price is still on the bullish side if buyers continue to drive momentum.

Related Reading | Solana below $40 amid network outage, are the bears back?

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