Cardano (ADA) has put up an impressive performance over the past 24 hours, registering a +12.71% gain to reach a current price of $1.08 USDT. The asset is approaching a key resistance after testing its high at $1.1153. Let’s explore the technical analysis to determine whether the move continues upwards or if there are signs of a correction.

Summary of Technical Data:

  • Current Price: $1.08

  • 24h High/Low: $1.1153 / $0.9551

  • 24h variation: +12.71%

  • 24h volume: 345,904,100 ADA

  • RSI (6): 79.2 (overbought)

  • RSI (12): 63.91 (bullish)

  • RSI (24): 59.35 (neutral-high)

Successful Technical Analysis:

1. RSI and Relative Strength

The RSI(6) at 79.2 indicates a strong overbought condition, which generally suggests the possibility of a price correction or consolidation. However, the RSI(12) and RSI(24) are still in the bullish and neutral-bullish zones, decreasing strength in the short- to medium-term trend.

2. Volume from Momentum

The 24-hour volume of 345.9 million ADA traded highlights robust capital movement, a strong indication of buying interest and momentum. This high volume is consistent with the bullish trend, but could also indicate potential exhaustion in the event of profit-taking.

3. Critical Supports and Resistances:

  • Immediate Resistance: $1.1153 (recent high)

  • Secondary Resistance: $1.20 (psychological level)

  • Primary Support: $1.00 (psychological zone and recent low)

  • Critical Support: $0.95

Projections for the Next 24 Hours:

Bullish Scenario:

  • If the price breaks the $1.1153 resistance with force and maintains high volume, the asset could seek $1.20 - $1.25 in the short term.

  • The elevated RSI and strong buying volume suggest continuation of the up move as long as the immediate resistance is broken.

Bearish Scenario:

  • If the price breaks $1.1153, the overbought RSI could lead to a correction towards the $1.00 zone and, in a further sell-off scenario, down to $0.95.

  • High volume may reflect profit-taking if the price begins to reverse trend.

Conclusion and Operational Strategy:

  • Current Trend: Bullish but overbought.

  • Strategy:

    • For aggressive traders: Consider short entries after confirmation of breakout of resistance at $1.1153.

    • For conservative traders: Wait for a possible correction to support levels at $1.00 before re-entering.

    • Risk Management: Use stop loss below $1.00 to minimize losses in case of reversal.

Recommendation: ADA remains on a high path, but with moderate risk of short-term correction. Pay attention to volume behavior and RSI.