Cardano Price Rally May Be a 'Bull Trap' Says Expert

Cardano (ADA) is currently trading at $0.21 after a 4.25% intraday price increase, but experts are warning that this may be a 'bull trap' rather than a genuine recovery.

The asset's momentum has flatlined, with the MACD momentum indicator reading near-zero, and open interest has decreased by 3.86%, which is a bearish sign.

According to Timothy Morano, ADA's price action is currently driven by relief buying rather than any fundamental changes in the market.

The $0.22 level is seen as a critical support level for ADA, and if it fails to close above this level on meaningful volume, the technical posture will remain bearish-to-neutral.