ADA price trades with modest gains for the second straight day. The price is relying on the vital support level as the market is in extremely oversold conditions. ADA price might be preparing for a bullish impulse on a smaller time frame.
- Cardano (ADA) price continues to trade range-bound.
- A daily close above 50-day EMA at $0.82 will print more gains.
- RSI bullish divergence on the 4-hour chart supports the short-term bullish outlook.
ADA price prepares for an upside reversal
On the 4-hour chart, the Cardano (ADA) price is consolidating in a very tight range of $0.75 and $0.80 since March 7. The price briefly broke the range and tested highs of $0.86 on March 9.
Currently, the price is making effort to cross the crucial 50-day Exponential Moving Average (EMA) at $0.80 just a tad below the upside range of $0.81.
A resurgence in the buying sentiment could push the price higher to meet the first upside target at $0.86. Next, an extended bullish momentum will bring $0.90 in play.
The trading volume is supportive as it rises along with the price. Sellers seem to accumulate the token near the reliable support level.
On the flip side, the price remains pressured below the descending trendline from the highs of March 5 at $0.88. A failure to cross above the bearish slopping line will invalidate the bullish outlook for the asset.
The immediate downside target is placed at the horizontal $0.78 support line.
Technical indicators:
RSI: The daily Relative Strength Indicator shows bullish divergence with the price since March 16. The indicator trade above the average line keeping bulls hopeful.
MACD: The Moving Average Convergence Divergence attempts to jump above the central line with a bullish bias.
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