Cardano's Bullish Stance Hinges on Key Support Level

Cardano's price remains technically bullish despite a pullback in its recent rally. The cryptocurrency currently trades near $0.2191 and is sitting above the 20-day EMA ($0.2073). However, it must hold onto the key $0.2132 0.5 Fib support level after gaining 3.31% on September 5 and 1.19% on September 6 before slipping 1.96% today.

On-chain transactions have fallen from a peak of about 26,500 on September 4 to 19,054 by September 6, signaling weaker on-chain and DEX activity despite the weekend rally. This has raised short-term risk for price continuation, making it uncertain whether Cardano can hold onto its gains.

Cardano's price prediction stays bullish above $0.2132, but it must hold onto this level to maintain its technical bullishness. The cryptocurrency is currently testing this key support level after giving back part of its weekend rally.