- What’s next?Â
- Cardano fundamentals stay positive
Cardano is currently in a “trapped” scenario, according to the Bollinger Bands indicator, with traders now watching the next price move.
Bollinger Bands are volatility bands placed two standard deviations above and below the 20-period (day or week) simple moving average of the price.
The scenario for Cardano on the daily chart is presented with price constricted below the midline, which is the 20-day MA and the lower band of the Bollinger range.
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As seen on the daily charts, the Bollinger Bands have narrowed since February as Cardano stayed in sideways trading.
Cardano has consolidated in a broad range between $0.22 and $0.312 since February, as bulls and bears engage in a tussle.
A narrowing band suggests declining volatility, which might be a signal that the market is coiling and preparing energy for the next big move in either direction.
What’s next?
At the time of writing, ADA was up 3.44% in the last 24 hours to $0.2633, in line with the broader market recovery. Major tokens snapped back on Tuesday as optimism rippled through risk markets.
Cardano’s price recovery is expected to face selling at the 20-day MA, currently at $0.27, with ADA only reaching a high of $0.267 in the early Tuesday session. A price climb past $0.27 and $0.30, which mark the midline and the upper band of the Bollinger range, might signal a potential short-term trend change.
On the other hand, support is expected at $0.24, the lower band of the Bollinger range, which the price has tested a handful of times since March.
Cardano fundamentals stay positive
Yesterday, Cardano announced the release of the Programmable Tokens Platform, a key to unlocking tokenization and further growth of stablecoins on Cardano.
In a key follow-up to its roadmap, the Cardano Foundation continues to facilitate the progress of CIP-0113, a standard to enable token issuers to attach programmable rules to Cardano native assets, allowing tokenized instruments to meet compliance and operational requirements.
A major milestone for interoperability was announced in February through the integration with LayerZero on Cardano.
Source: https://u.today/cardano-at-key-price-juncture-as-bollinger-bands-tighten-where-to-next
