Cardano (ADA) recently flipped its initial $0.16 resistance level into a support zone on the 4-hour chart, trading at $0.1651 at press time. While this structural swap signals bullish momentum, one analyst notes that the Relative Strength Index (RSI) is lagging behind, which may cause the coin to retest its lower resistance ($0.16).
According to Nick Valdez, ADA’s short-term upside momentum may hit a roadblock as RSI stalls around the mid-40s. Typically, this signals depletion of the buying pressure necessary to drive a vertical price breakout. It could also signal a possible liquidity hunt or a market in need of consolidation when coupled with a price above the support level.
For this reason, Valdez argues that ADA could drift slightly downward to test the strength of its lower trendline and shake out weak hands. Should buyers step in to defend this lower support, the analyst anticipates a price bounce that would validate the support zone as a new baseline.
Even more, if this defensive structure holds, it could clear the path for a rally towards the upper resistance zone of $0.20 established earlier this month.
Source: X
On July 15, ADA whale holdings hit a multi-year high, or about 67% of the total circulating supply. While this supports bullish technical patterns, the coin still shows overbought signals and a resultant price stagnation between $0.14 and $0.20 in the past month.
Source: CoinMarketCap
Aside from that, Volvo Group has joined the Cardano Foundation in discussions regarding blockchain utilization in supply chain management.
For now, traders should continuously monitor 4-hour candle closes relative to the trendline. They should also watch out for the RSI line hooking up, which would indicate an influx of buyers, rising demand, and a possible uptrend.
Additionally, the November launch of the Leios upgrade could boost throughput, potentially driving demand for and adoption of ADA. The market is also anticipating Cardano ETF approvals towards the end of the year.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
US President Donald Trump is scheduled to meet with Senators on Thursday to negotiate the…
The CC price climbed more than 10% today, but the rally hit an immediate roadblock…
Crypto expert Dr Altcoin has alleged that Pi Network is facing a supply crisis tied…
The ONDO price gained nearly 5% after Ondo announced a major milestone in tokenized securities,…
An analyst tracking XRP says the token could eventually push past $9, though he's careful…
Gold and silver are both selling off hard today, and one chart strategist says the…
