Why ADA MUST Smash The 0.46 Resistance
ADA consolidates in the pocket right below the crucial resistance of $0.46. If Cardano bulls want to go full steam, breaking through this level is essential. Otherwise, the risk of another dip toward the "below 40 level" increases.
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1️⃣ Chart Analysis
The 0.46 level has been a significant support and resistance level in Cardona's history. In April, ADA dived below this level for the first time since 2023. Afterward, ADA made several attempts to cross back above but was always rejected.
After its dip to 0.35, ADA started another attempt, which was rejected again. Currently, the token consolidates right below this level.
Breaking through the resistance would open the path towards 0.59-0.6, where the next stronger resistance lies.
2️⃣ Technical Indicators
On the daily chart, ADA shows some overbought momentum indicators resulting from the latest price increase. Therefore, the consolidation might be healthy to have momentum indicators return to neutral zones before a breakout starts.
3️⃣ Trade Signals
In one word: Indecisive.
A couple of weeks ago, ADA printed a bearish EMA crossover signal on the weekly chart. Signals on higher timeframes are usually very reliable. As a result, ADA dipped almost 20% right after. However, ADA flashed precisely the same signal on the daily chart just today! This further seconds the scenario of an outbreak to the top.
➡️ What's Next?
Based on the overall bullish momentum, I expect a short period of consolidation (similar to what we discussed about Bitcoin). Afterward, ADA should tackle and break the resistance.
