The fact that Cardano (ADA) price is approaching the $1.2 overhead ceiling undercuts the buyers’ earlier denials. To validate a continuation of the bullish surge, the buyers would need a true breakout to give closing and sustainability above the $1.2 barrier.
Cardano (ADA) buyers broke through a confluence of technical resistance on March 23rd, including the $1 psychological level, dynamic resistance trendline, and 100-day SMA. As a result, the parabolic rise topped $1.25 for the first time since mid-February.
The sellers, on the other hand, put up solid resistance above $1.2 and refused to let a daily candle close above it. Despite this, the sellers were unable to push the price below the 100-day SMA ($1.12), resulting in erratic price activity throughout the week.
Another failed attempt by buyers to break through the $1.2 resistance level, on the other hand, would indicate a weakening of the bullish momentum and could result in a modest drop to the $1 level.
As the distance between the MACD and the signal narrows, the MACD indicator is approaching a bearish crossover. This negative signal could be thwarted by a probable breakout from the $1.2 resistance level.
A bullish movement in traders’ sentiment is indicated by the 50- and 100-day SMAs moving sideways. Furthermore, the previous dynamic resistance level of the 100 SMA is now giving solid support.