Cardano [ADA] cools off into key range – Where can traders look for gains

ambcrypto.com:

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

Cardano [ADA] rebounded strongly after hitting its recent low of $0.3020 on 12 March. It saw aggressive buying at the above lows pushing its price break key resistances as Bitcoin [BTC] surged to the $26k area. 

Read Cardano’s [ADA] Price Prediction 2023-24

However, BTC saw a sharp rejection at $26k and was operating below $25k at press time. Similarly, ADA hit the price ceiling at $0.368 and entered a retracement, pushing it into a key price range. As such, BTC’s price action will determine ADA’s price direction in the next few days/weeks. 

Source: ADA/USDT on TradingView

ADA had initially breached the $0.3306 – $0.3466 consolidation range during BTC’s extra rally after the February US CPI data release. The price rejection at $0.3679 set ADA back into the range. But the price action was in the upper range, suggesting a likely bullish breakout if BTC maintains the $24k level and surges. 

Therefore, ADA could swing between $0.3306 and $0.3466 before a possible breakout. A break of the range and a close above $0.3466 could tip near-term bulls to push the price toward the overhead resistance at $0.3679. But they must clear the hurdles at $0.3513 and $0.3605. 

Alternatively, ADA could witness intense selling pressure if the price closed below $0.3306. But the drop could slow down at the double bottom pattern’s neckline of $0.3200 or the previous low of $0.3020. These levels could be used as short-selling targets, especially if BTC witnessed a sharp retracement towards $20k. 

The Relative Strength Index (RSI) pulled back from an overbought territory and moved sideways,