 ▲ Cardano (ADA) |
An analysis suggests that for Cardano (ADA) to overcome short-term downward pressure and enter a full-fledged rebound trajectory, it must decisively break above the Bollinger Bands midline on the daily chart and close above it.
According to cryptocurrency outlet The Crypto Basic on February 20 (local time), Cardano’s intraday price has been fluctuating within a narrow range between $0.2682 and $0.277. After trading near the upper band early in the session, the price declined toward mid-session before attempting a modest recovery. With buyers yet to fully seize market control, a breakout is needed to determine the next phase of volatility.
From a technical perspective, Cardano is currently trading just below the Bollinger Bands midline, positioned around $0.2756. This level is acting as a strong dynamic resistance, and forming a daily close above it is essential for a short-term bullish reversal. If Cardano successfully breaks above the midline, it could gain momentum toward the next major resistance area near $0.3012, corresponding to the upper Bollinger Band. Conversely, repeated rejection at the midline may sustain selling pressure.
On the downside, the lower Bollinger Band around $0.2499 serves as a key support level. A drop below this level could trigger fresh bearish momentum, increasing the risk of an additional correction toward the $0.2200 range. The Awesome Oscillator, a momentum indicator, remains below the zero line at approximately -0.0285, indicating that bearish momentum still dominates. However, the histogram bars are gradually turning green and shrinking in size, suggesting that selling pressure is slowly weakening.
Funds flow in the futures market reflects a mix of short-term buying interest and cautious positioning. Over the past hour, $8.32 million flowed into the market, exceeding outflows of $6.3 million and resulting in a net inflow of $2.02 million. However, on a 24-hour basis, there was a net outflow of $11.02 million, indicating that investors are generally reducing exposure. Net flows over the past three and five days also recorded negative figures of $10.13 million and $22.23 million, respectively, pointing to a prevailing defensive stance from a longer-term perspective.
Ultimately, Cardano’s direction hinges on whether it can convert the Bollinger Bands midline into support during this trading session. After suffering steep declines of 21.69% over the past 30 days and nearly 70% over the past 180 days, investors are closely watching whether a breakout above $0.2756 can mark a break from its prolonged downtrend. Until the direction of the current narrow range breakout is confirmed, a cautious approach is advised, with close attention paid to changes in trading volume and daily candle closes.
Disclaimer: This article is for investment reference purposes only and we are not responsible for any investment losses arising from it. The content should be interpreted solely for informational purposes.