Cardano’s Price Surges 15%: A Temporary Rally or a Sustainable Trend?

Cardano’s price is surging, raising back-and-forth on the sustainability of this rally. The increase in ADA’s value has also reignited discussions on its long-term prospects and leadership under Charles Hoskinson. This sharp price movement has fueled optimism watching for signs of whether this trend is truly robust or a fleeting spike.

ADA’s price rose from $0.3706 to $0.4257, a 14.86% increase, just in a day. The bullish shift was also accompanied by a 113.75% rise in trading volume, reaching nearly $997.35 million.

Such an uptick in volume suggests heightened buying interest, potentially lending stability to ADA’s current levels if demand holds. However, the surge also brings ADA closer to overbought conditions, which could trigger a temporary correction.

Key Support Levels to Watch

Several support levels are critical in the current trend. The psychological $0.40 level has provided support, enabling ADA to sustain its recent upward movement. Another key support lies at $0.3706, where the recent rally started.

These support points act as strongholds where buyers have previously stepped in, making them possible buffers against future price dips. Should ADA encounter downward pressure, these levels might serve as crucial zones to stabilize the price.

Resistance Levels Posing Potential Challenges

Resistance is equally essential in gauging ADA’s price trajectory. The price is hovering around $0.43, where a slight pullback has signaled some resistance. If ADA can decisively break past $0.43, it could open further upside potential.

Read also : Cardano’s Awakening: Can ADA’s +4.13% Surge Continue Post-Chang Hard Fork?

Beyond this, the $0.45 level stands as a major resistance, aligned closely with ADA’s maximum supply cap. A breakout above this point may push ADA to test new highs, supported by the underlying momentum from increased trading volume.

RSI and Short-Term Market Outlook

ADA’s 4-hour RSI is 82.69, suggesting overbought conditions that could precede a short-term correction. This high RSI reflects recent strong buying activity, indicating that prices may stabilize or experience a mild pullback before rising further. ADA is also trading above its signal line in the 4-hour timeframe, suggesting continued bullish momentum.