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Cardano (ADA), the ninth largest cryptocurrency, might be set for a major move, according to the Bollinger Bands.
According to Ali, the Bollinger Bands are squeezing on Cardano's (ADA) 12-hour chart, signaling that a potential spike in volatility might be on the horizon.
The Bollinger Bands are a popular technical indicator used to gauge market volatility. When the bands contract, it indicates reduced volatility, often preceding a major price move. Traders pay attention to these squeezes, as they might signal impending volatility.
As ADA's price consolidates between narrowing Bollinger Bands, market players expect a significant move. If bullish momentum takes over, ADA could see a significant breakout to higher levels. However, a downward move remains a possibility if sellers gain control.
Gamza KhanzadaevAt press time, ADA was down 4.43% in the last 24 hours to $0.734.
Potential scenarios
According to the daily chart, if buyers want to gain control, they must push and keep the ADA price above the 50-day SMA of $0.755. If they can do that, ADA may rise to $0.84. This level may serve as a solid resistance, but if the bulls triumph, ADA might rise to $1.02.
Tomiwabold OlajideBears, on the other hand, may aim to pull ADA below the $0.719 support level, which corresponds to the daily SMA 200. This is a critical mark for bulls to defend because a break below it could lead to additional losses in the ADA price. Cardano might then fall to $0.58 and, eventually, $0.50.
Cardano news
Nubank, a Latin American financial institution backed by Warren Buffett's Berkshire Hathaway, has increased its crypto offerings by adding four altcoins. According to an announcement on March 25, the bank would bring Cardano, Near Protocol, Cosmos and Algorand to its 100 million Brazilian consumers.
In related news, Interactive Brokers, a worldwide brokerage with $9.3 billion in revenue for 2024, is expanding its altcoin support to include four new coins. According to a March 26 release, the platform now offers Solana, Cardano, XRP and Dogecoin for trading.
Vladislav Sopov
Dan Burgin