Cardano price has extended its uptrend and reaffirmed the $0.600 support level as the broader crypto market continues to resurge. The ADAUSD pair traded at $0.650 at the time of writing, and was up by 1.9% on the daily chart to bring its weekly gains to 13.3%.
In addition, the coin has crossed above the Volume Weighted Moving Average ($0.632) on the daily chart. However, its Relative Strength Index (RSI) is at 47, signaling an exhaustion by the buyers. Furthermore, the 4-hour chart has been showing lower highs with candles having long wicks near $0.660 to signal rejection. A continuation of that trend will likely result in a pullback in the near term.
Cardano price also faces downward pressure from declining open interest (0I) activity. According to Coinanalyze data, the coin’s OI declined by 4.43% in the last 24 hours, indicating declining investor confidence.
Meanwhile, Cardano chain’s DeFi TVL (Total Value Locked) reduced by 4.26% in the last 24 hours, although it registered 8.44% growth in the longer weekly time frame. That adds credence to the likely prevalence of the downward momentum the near-term. The Cardano blockchain has about 2,000 projects building on it. That not only means increased utility for ADA, but also portends the likelihood of a continuous growth in the medium and long term.
Cardano Price Prediction
The momentum on Cardano price signals that the upside will likely prevail if the price action stays above $0.631. That trend could meet initial resistance at $0.666. However, a stronger momentum will go higher and could test $0.700 in extension.
On the other hand, going below $0.631 will invite the sellers to take control. If that happens, primary support will likely be at $0.607. Breaking below that level will invalidate the upside narrative. Also, an extended control by the sellers could take ADA price lower ad test the second support at $0.582.
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