Cardano's Price Struggles to Break $0.85 Resistance Despite 30% Volume Rise

Cardano's price has been making efforts to surpass a crucial resistance level following a breakout from consolidation, while bears continue to limit the rally within a specific range. The network has been integrating with various other platforms focused on increasing bullish momentum, aiming to surpass $1.

Cardano bulls have shown strength following a strong rebound from local bottoms. Since then, the platform has experienced a rise in volume, but network activity has decreased, leading to lower volatility. Despite short liquidations exceeding $800 million, daily active addresses saw a significant drop during price increases.

This drop aligns with a notable rise in volume of over 30% to 40% in the past few days. The increase in volume coupled with a decrease in daily active addresses suggests whale accumulation, which has reduced volatility. As a result, the ADA price struggles to break through an important resistance level, despite holding the 200-day moving average as strong support.

The ADA price broke a short-term descending trend a few days ago but has struggled to secure gains. The price fluctuates around $0.8, failing to secure above $0.85, which could have lifted the token above bearish influence. On-chain data reveals a drop in retail investor participation, keeping the price within a range.

Despite the bullish breakout, the ADA price remains under bearish influence, stuck within a descending parallel channel. Although the price has risen above the 200-day moving average, it struggles to break the channel's resistance, indicating a drop in bull strength. Conversely, the Relative Strength Index (RSI) has reached the upper threshold, and if it enters the overbought zone, a breakout from the pattern can be expected.

This could lead to a bullish crossover between the 50 and 200-day moving averages, and validation of the Golden Cross could potentially elevate levels above $1. The upcoming weekly close is crucial for the Cardano (ADA) price rally, as failing to rise above $0.85 could compel the token to remain consolidated within the pattern.

According to analysts' forecasts, if Cardano successfully forms a Golden Cross, it could signal a significant bullish trend. Historically, a Golden Cross has been a strong indicator of a sustained price increase. However, it is important to note that past performance is not indicative of future results, and market conditions can change rapidly.

In summary, Cardano's price is currently in a critical phase, with bulls and bears battling for control. The formation of a Golden Cross could potentially drive the price above $1, but this remains speculative. Investors should closely monitor the upcoming weekly close and other market indicators to make informed decisions.