ADA price jumped by 5% in the last 24 hours to trade near the critical resistance level of $0.7.
But is there enough buying pressure to sustain this bullish trend reversal?
Read on to find out…
Cardano is looking to start the new month on a bullish front after jumping 5% in the last 24 hours to reach intraday highs of $0.68.
This makes it the best-performing of the top 10 altcoins for the day, followed closely by Dogecoin, which reported a 6% value gain.
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Though the top altcoin is still down by more than 10% in the week, it is back to trading around the pre-ETF hype levels.
Today’s price jump may be attributed to three key factors. The first was the slight bullishness reported across the crypto industry.
This saw the market cap for the industry rise by close to 2% to climb back above 2.71 trillion.
The likes of Bitcoin and Ethereum, on the other hand, rallied by 2% and 3%, respectively.
The bullish momentum was also a reaction to the positive news that net inflows into Cardano-related investment products had shot up by more than 500%.
This signaled the end of the poor run of investor interest in altcoin investment funds.
The week ending 24th March, only $100,000 had been invested in Cardano.
In the last week of the month, however, the inflows shot to $0.6 Million.
The total data from Coinshares indicates that altcoin ETPs received $33 Million in net inflows for the week.
This marked the first week of positive inflows after four weeks of accelerated outflows, which drained $1.7 Billion off the market.
Lastly, the bullishness can also be attributed to the fact that Cardano futures had been listed with the Coinbase. The crypto exchange received the certification to trade the derivative from the CFTC and debuted the product on Monday.
This exposes Cardano to more institutional investors as well as retail investors who are looking for exposure to leveraged crypto derivatives.
Can ADA Sustain this Uptrend?
It is highly unlikely that Cardano will sustain this bullish reversal, especially considering the incoming Trump tariffs. Historically, major tariff announcements have had a negative impact on Cardano prices.
From a technical perspective, Cardano lacks the bullish pressure to force and sustain a breakout. The MACD indicator, for example, shows a bearish crossover or near-flat momentum, indicating a lack of strong buying interest.
Further, the RSI is around 44-46, which is below the 50 neutral level, meaning there is no strong bullish pressure.
Importantly, Cardano’s price is struggling to break above the $0.74 – $0.84 resistance zone. Unless buyers step in aggressively, price action may continue to move sideways or even retest support at $0.65.
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