Cardano (ADA) Price Analysis: Can Bulls Spark a Recovery?
Cardano (ADA) Price Analysis: Can Bulls Spark a Recovery?
\n
Cardano’s price has been on a downward trajectory, failing to break through the $0.3850 resistance level and subsequently dropping below the $0.3550 support. This bearish trend has pushed ADA below the key $0.350 mark and the 100-hourly simple moving average, indicating a potential continuation of the downtrend.
\n
The hourly chart paints a picture of short-term bearish momentum, with a trend line forming resistance at $0.3480. If the price remains below the $0.360 resistance zone, a further decline is likely. The recent dip below the $0.350 mark could be attributed to Cardano’s struggles to follow Bitcoin and Ethereum’s upward trajectory. ADA formed a short-term top at the $0.4150 resistance level, and the subsequent decline brought the price below key support levels of $0.3850 and $0.3650.
\n
However, the bulls have emerged, creating a low at $0.3360, and the price is now consolidating losses. A minor push above the $0.3420 level saw ADA test the 23.6% Fib retracement level of the downward move from the $0.3853 swing high to the $0.3360 low. The current trading below the $0.360 level and the 100-hourly simple moving average suggests a potential continuation of the downward trend.
\n
Bullish Opportunities
\n
On the upside, the bulls face resistance near the $0.3500 zone. The short-term bearish trend line at $0.3480 also poses a challenge. The first resistance level lies at $0.360, coinciding with the 50% Fib retracement level of the downward move from the $0.3853 swing high to the $0.3360 low. If ADA can breach the $0.3740 resistance, a strong rally could ensue, potentially pushing the price towards the $0.400 region. A further surge could propel ADA towards the $0.4150 level.
\n
Bearish Outlook
\n
If Cardano fails to break above the $0.3500 resistance, a further decline is likely. The immediate support on the downside lies near the $0.340 level, with the next major support at $0.3350. A break below this level could lead to a test of the $0.3220 support. The next major support level is near the $0.300 mark, where the bulls may emerge to prevent further downside.
\n
Technical Indicators
\n
The hourly MACD for ADA/USD is gaining momentum in the bearish zone, signaling potential further declines. The hourly RSI for ADA/USD is below the 50 level, indicating bearish sentiment.
\n
Key Support and Resistance Levels
\n
Support: $0.3400, $0.3350\nResistance: $0.3500, $0.3600
\n
The current market dynamics suggest a battle between the bulls and the bears. While the bearish momentum is strong, a break above the $0.3740 resistance could signal a significant shift in sentiment, opening the door for a strong rally. However, if the bears manage to push ADA below the $0.3350 support level, further downside is likely.
\n
It’s important to stay informed and monitor the technical indicators and price action closely to determine the next move for Cardano.