In the midst of the recent correction phase in the crypto market, the price of Cardano (ADA) has experienced a decline for nearly a month, plummeting to local support at $0.35. However, the daily chart illustrates that the aforementioned support is aligned with the lower trendline of the channel pattern, which has driven a recovery rally in the Cardano coin for almost four months. This pattern provides a significant pullback accumulation opportunity at the lower trendline, which may influence future trends of ADA.
**Key Points:**
– A channel pattern governs the ongoing recovery in ADA price.
– A bearish crossover between the 20-day and 50-day moving averages may encourage a sideways move for a few more sessions.
– The intraday trading volume in ADA coin is $189.3 million, reflecting a 13% loss.
While the crypto market has seen strong selling pressure in recent days, the Cardano price has turned sideways above the support trendline of the channel pattern. Amid this consolidation, the ADA price has shown several lower price rejection candles, indicating the failed attempts of sellers to breach the support trendline.
These rejection candles suggest a higher possibility of a bullish reversal from the channel support. At the time of writing, the ADA price is trading at $0.358 with an intraday loss of 0.31%.
However, for a better confirmation of a bullish reversal, the ADA price needs to breach immediate resistance at $0.376-$0.373, as shown in the chart. A daily candle closing above this level will present an opportunity for interested traders.
In an ideal scenario, a reversal from the channel support trendline typically drives a rally to the overhead trendline. As a result, the ADA price could potentially grow by around 40% to hit the $0.5 mark.
On the other hand, a breakdown below the support trendline would undermine the bullish thesis and send prices lower.
**Technical Indicators:**
**Moving Average Convergence Divergence (MACD):** The MACD (blue) and signal (orange) falling lower into bearish territory indicate a sustained bear trend.
**Exponential Moving Average (EMA):** The 100-day EMA moving near the $0.376 barrier increases the significance of this chart level.
**Cardano Coin Price Intraday Levels:**
– Spot price: $0.359
– Trend: Bearish
– Volatility: Medium
– Resistance levels: $0.37 and $0.378
– Support levels: $0.35 and $0.324
**Potential Trading Opportunities:**
A break above the immediate resistance at $0.376-$0.373 could provide a trading opportunity, with a target of the overhead trendline at $0.5. Stop losses should be placed below the channel support trendline, as a breakdown of this level would negate the bullish scenario.
Alternatively, traders could wait for confirmation of a bullish reversal with a daily candle close above the immediate resistance, before entering long positions.
**Potential Event Catalysts:**
Although no major event catalysts are currently affecting the ADA price, investors and traders alike should keep an eye on any potential news or announcements related to the Cardano project. Developments within the project, such as the recently unveiled Cardano ERC-20 converter, could impact ADA’s price positively.
Additionally, the wider crypto market, including Bitcoin (BTC) and Ethereum (ETH), may also influence the ADA price. An overall recovery in the cryptocurrency market could positively affect ADA, as well as other altcoins.
**Risk Disclaimer:**
The information provided is for general information purposes only. No information, materials, services and other content provided on this post constitutes solicitation, recommendation, endorsement or any financial, investment or other advice. Seek independent professional consultation in the form of legal, financial, and fiscal advice before making any investment decision.
Past performance is not a guarantee of future price appreciation. Trading and investing in cryptocurrencies involve substantial risk of loss and is not suitable for every investor. The valuation of cryptocurrencies and futures may fluctuate, and as a result, clients may lose more than their original investment. BeginnerCrypto does not guarantee any specific outcome or profit. You should be aware of the real risk of loss in following any strategy, including those mentioned in this post, or on any website, which may make reference to the BeginnerCrypto brand. All trading strategies are used at your own risk.
