Cardano’s Recent 17% Surge Suggests Potential Recovery Amid Bearish Indicators and Key Resistance Levels to Watch

• Cardano has risen 17% in the past three days, signaling potential recovery from the 40% losses sustained in March, with $0.80 resistance in sight.

• The MVRV Long/Short Difference at -89% suggests that long-term holders may be near selling out, paving the way for new investor entries to support the rally.

• If Cardano can breach $0.85 and flip it into support, it could target $0.99 for a sustained recovery; failure to hold $0.74 may lead to consolidation between $0.74 and $0.66.

Cardano’s recent price surge signals potential recovery opportunities as market dynamics shift. Discover the insights behind the rally and key resistance levels.

Are Cardano Investors Noting An Opportunity?

The MVRV Long/Short Difference for Cardano is currently sitting at -89%. This indicates that long-term holders (LTHs) are facing near-zero profits, with some even experiencing losses. On the other hand, short-term holders (STHs) of less than a month are seeing profits.

This oscillating indicator reaches extreme negative values near the end of the bear cycle, as when STHs begin to sell, new investors typically step in to absorb the selling pressure.

This dynamic can help keep the price afloat and even push it higher, maintaining positive momentum. The shift could play a pivotal role in recovering from the recent losses.

Cardano MVRV Long/Short Difference. Source: Santiment

Bullish technical indicators support Cardano’s macro momentum. The Moving Average Convergence Divergence (MACD) shows that bullish momentum is strengthening.

The rising green bars on the histogram suggest that the market is experiencing positive momentum, and the possibility of a bearish crossover is still distant.

The MACD’s current trend supports the idea that Cardano is likely to continue its upward trajectory. As the market shows increasing bullish strength, Cardano’s price could rise further.

Cardano MACD. Source: TradingView

ADA Price Attempts Recovery

Cardano is currently trading at $0.78, a 17% increase over the last three days, bringing it closer to the $0.80 resistance. This recent rally offers another opportunity for Cardano’s price to recover the 40% losses it experienced earlier in March.

If positive momentum continues, Cardano could break through key resistance levels and target higher price points.

A complete recovery would likely require Cardano to reach $1.13, but this could take more time. For now, the realistic target is to flip the $0.85 resistance into support.

If successful, this would lock in the recent gains and set ADA up for further growth towards $0.99, positioning it for a sustained recovery.

Cardano Price Analysis. Source: TradingView

However, if Cardano fails to maintain its growth and drops below $0.74, the altcoin could enter a period of consolidation. In this scenario, the price would likely fluctuate between $0.74 and $0.66, invalidating the current bullish outlook.

Conclusion

Cardano’s recent price surge offers a glimmer of hope for investors. The developments in the long/short differential and bullish technical indicators suggest a potential for recovery. Yet, vigilance is essential as any slip below $0.74 could challenge the current recovery narrative. Keeping an eye on these price levels will be crucial for assessing Cardano’s path forward.