Will $0.24 Support Start a New Recovery

The Cardano price experienced a mixed sentiment throughout September, mostly oscillating within a narrow band on the daily chart. With increasing selling pressure, it repeatedly met resistance around the $0.26 mark and found consistent support near the $0.24 level. The recent downtrend in the broader crypto market has once again driven ADA to test its longstanding support at $0.24, signaling another potential bounce.

Also Read: Cardano Project Catalyst Wraps Up Fund 10, Here are Key Takeaways

Will ADA Price Defend $0.24?

• A bullish breakout from the resistance trendline will be an early signal for trend reversal
• The $0.24 has remained a strong support zone for Cardano traders.
• The intraday trading volume in the ADA coin is $87 Million, indicating a 23% loss

Source- Tradingview

 On September 28th, the ADA price experienced resistance from a descending trendline, a prominent feature governing the recent corrective phase. Over the past week, this downward pressure caused this altcoin to shed 5% of its value, nudging it toward the $0.24 support zone. 

This particular support level has held firm for nearly three years, making it a significant accumulation point for investors. The recent daily candle, with a modest 0.4% gain, indicates a neutral stance. This suggests that the strong bearish sentiment might be dissipating, as traders recognize renewed buying interest around the $0.24 mark. 

Should this buying pressure continue, the ADA price might attempt to breach the descending resistance trendline, potentially signaling the beginning of a bullish recovery

If Cardano coin manages to surpass this key resistance, the buyers may drive the prices upwards by roughly 6%, targeting the significant resistance at $0.25. A continuation of this upward move could further propel the coin towards the $0.28 mark.

ADA vs BTC Performance

Source: Coingape| Cardano Vs Bitcoin Price

The last six months’ price behavior has showcased weakness in Cardano coin in comparison with Bitcoin price. While BTC has been trading new sideways for the past six months, the ADA price has witnessed a steady downtrend. This established downward trajectory indicates it is a risky asset to invest.

• Moving Average Convergence Divergence: A potential bearish crossover between the MACD(blue) and signal(orange) will prolong the correction trend.
• Bollinger Band: The lower band of the Bollinger Band indicator offers additional support to buyers.