Cardano (ADA) has been trading below a descending trend line since May 20 and is currently priced at $0.37, reflecting a 24% decrease over this period.
The coin has seen a resurgence in demand in the past week, pushing its price closer to the trend line and indicating a potential breakout above this resistance level.
The On-Balance-Volume (OBV) indicator, which measures buying and selling pressure, has increased to 42.54 billion, suggesting strong market demand for ADA.
Additionally, ADA's Elder-Ray Index, which measures the power balance between buyers and sellers, has consistently posted positive values, further supporting the bullish trend.
The Awesome Oscillator (AO) has also shown upward-facing green histogram bars since August 25, confirming bullish momentum in the market.
The coin's funding rate remains positive at 0.0023%, reflecting strong bullish sentiment among futures traders who are betting on a price rally.
If the demand persists, ADA could break above the descending trend line and reach $0.39. Conversely, increasing sell-offs could see the coin's value drop to $0.27.
