Cardano Surges 17% in Three Days, Eyes $0.80 Resistance

Cardano has experienced a notable 17% surge over the past three days, indicating a potential recovery from the 40% losses it incurred in March. This upward movement has brought the cryptocurrency closer to the $0.80 resistance level, a critical point that could determine its future trajectory.

The MVRV Long/Short Difference for Cardano is currently at -89%, suggesting that long-term holders are nearing the point of selling out. This situation often paves the way for new investors to enter the market, potentially supporting the ongoing rally. Historically, when short-term holders begin to sell, new investors typically step in to absorb the selling pressure, helping to maintain or even increase the price.

Technical indicators also support a bullish outlook for Cardano. The Moving Average Convergence Divergence (MACD) shows strengthening bullish momentum, with rising green bars on the histogram indicating positive market sentiment. This trend suggests that Cardano is likely to continue its upward trajectory, barring any significant bearish crossovers.

Currently trading at $0.78, Cardano's recent rally offers another opportunity to recover from its March losses. If the positive momentum continues, Cardano could break through key resistance levels and target higher price points. A complete recovery would require reaching $1.13, but a more immediate goal is to flip the $0.85 resistance into support. Successfully doing so would lock in recent gains and position Cardano for further growth towards $0.99, setting the stage for a sustained recovery.

However, if Cardano fails to maintain its growth and drops below $0.74, it could enter a period of consolidation. In this scenario, the price would likely fluctuate between $0.74 and $0.66, invalidating the current bullish outlook. Therefore, vigilance is essential as any slip below $0.74 could challenge the current recovery narrative. Keeping an eye on these price levels will be crucial for assessing Cardano’s path forward.