Cardano bulls are displaying their strength soon after the rally triggered a strong rebound from the local bottoms. Since then the platform has been experiencing a rise in volume but the network activity has taken a hit, due to which the volatility has also remained lower. Despite short liquidations of over $800 million, the daily active addresses took a major hit during the times when the prices continued to rise.
This drop has come in line with the volume that has witnessed a notable rise of over 30% to 40% in the past couple of days. The rise in the volume with a drop in the daily active addresses hints towards the whale accumulation, which has dropped the volatility. As a result, the ADA price is struggling to break through an important resistance level, despite holding the 200-day MA as a strong support level.
The ADA price broke the short-term descending trend a few days ago but has been finding it difficult to secure the gains. The price is juggling in and out of $0.8 as it is failing to secure above $0.85, which could have lifted the token above the bearish influence. The on-chain data reveals a drop in the participation of the retail investors, which has kept the price accumulated within a range. Will the price break above the range?
Despite the bullish breakout, the ADA price remains restricted under bearish influence as the price is stuck within a descending parallel channel. Although the price has risen above the 200-day MA, it is struggling to break the resistance of the channel, hinting towards a drop in the strength of the bulls. On the other hand, the RSI has reached the upper threshold, and if it enters the overbought zone, a breakout can be expected from the pattern.
This could also further lead to a bullish crossover between the 50 & 200-day MAs, and a validation of the Golden cross could potentially elevate the levels above $1. Hence, the upcoming weekly close could be important for the Cardano (ADA) price rally, as a failure to rise above $0.85 could compel the token to remain consolidated within the pattern.
