- Cardano price nears $0.85 resistance after a strong August rebound, with support at $0.80 and potential gains up to $0.93.
- Cardano trading volume rises by 2.25%, while open interest drops 1.71%, indicating increasing market participation but some caution.
- With long positions dominating, Cardano faces volatility risks, as recent liquidations highlight market instability near key resistance levels.
Cardano price has displayed remarkable resilience as it recovered a dip of $0.72 that was hit at the beginning of August. With the price moving close to the $0.85 resistance level, traders are looking closely to see whether Cardano will clear this critical level. Further sustained movement beyond$ 0.85 may indicate gains in the short-term.
Cardano Price Action and Critical Levels
Cardano price has been on a constant uptrend since the swing low at $0.72, and has been attempting to break resistance at the $0.82 to $0.85 range, in proximity to the 50 Fibonacci retracement. Breakout over this might be between $0.88 and $0.90, even up to $0.93.Yet, the Moving Average Convergence Divergence (MACD) indicator indicates slowing momentum, as the distance between the MACD line and signal line has reduced.
Source: Tradingview
At the lower end is support at 0.80 with an added support of an ascending trendline at $0.78-$0.79. Relative Strength Index (RSI) stands at $51.94 indicating neutral position, but signaling bearish divergence. Should Cardano not manage to sustain these levels, it can subsequently pull back to $0.75 or even $0.72.
Cardano Price Growth Amid Volatility and Caution
Cardano traded volume increased by 2.25% to reach an amount of $2.61 billion and the open interest fell by 1.71% to record a value of $1.37 billion. The number of options trading had the reduction of a vast 92.94%, amounting to only $6.59K, indicating less futile speculation.
Source: CoinGlass
As per the data, there are more long positions in the market particularly in major exchanges like Binance and OKX indicating a bullish market mood. The recent liquidations of long positions suggest that the market has been unstable with traders being caught in price pulls.
As long as the Cardano price sustains upward pressure together with the volume levels, it may experience incremental growth but volatility may cause further drops in the event of loss of pressure.
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