Cardano (ADA) has experienced a 15% price surge this week, reaching a two-month high of $0.40. The increase is attributed to broader macro bullish cues and growing investor optimism.
Despite this positive trend, two key factors could halt the upward momentum. Cardano's 30-day MVRV ratio has hit 13%, indicating that many investors are in profit. Historically, this range triggers selling pressure, potentially causing a price pullback.
The Relative Strength Index (RSI) for Cardano is also approaching the overbought zone. This typically signals an impending market correction as buying pressure diminishes, suggesting that ADA may be nearing its peak.
For ADA to continue its rally, it must breach the resistance at $0.42. Failure to do so could result in a price drop to $0.37 or even $0.34 if broader market momentum weakens.
However, if the overall market sentiment remains bullish, ADA could overcome profit-taking pressures, breach $0.42, and aim for $0.46, achieving the anticipated 15% rally.
