Cardano [ADA] faces price rejection at $0.4214, further 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] posted a 10% hike on 15 February after Bitcoin [BTC] reclaimed the $24k zone. The impressive rally followed strong US retail sales in January. Moreover, retail trade sales increased by 2.3%, according to the US Census Bureau. 

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

However, ADA’s uptrend momentum slowed at press time after facing a price rejection at $0.4214. 

Source: ADA/USDT on TradingView

ADA entered February on a bearish note. It broke below the ascending trendline (white) alongside several support levels too. However, it found a steady hold within the 0% and 23.6% Fib pocket levels, allowing bulls to launch a recovery. The recovery was further boosted after BTC reclaimed the $24K zone. 

The bullish structure could allow a retest of the overhead resistance of $0.4214. As such, short-term bulls could target $0.4214. But bulls might need to clear their positions if ADA breaks below the 78.6% Fib level. The stop loss could be placed below this level. 

On the other hand, short-sellers should be cautious of the 78.6% Fib level of $0.4050. It could offer bulls steady ground. Nevertheless, sellers can lock profits here, but a break below it could offer more shorting opportunities at the seven-period EMA of $0.4023 or the 61.8% Fib level of $0.3921. Any further drop could be kept in check by the 26-period EMA. 

The RSI and OBV surged, giving bulls the upper hand. But the RSI was in the overbought zone, a ripe condition for a reversal, alongside a massive drop in demand which could complicate further uptrend. 

Source: Santiment

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