Cardano Price Sees a 5-6% Pullback Before The Next Recovery Cycle Begins

ADA price Prediction: The ongoing recovery in the Cardano coin price showed a temporary consolidation in the third week of March. The cluster of candles resonating between the $0.35 and $0.32 level offered a short break period to replenish exhausted bullish momentum. Thus, a recent bullish breakout from $0.35 resistance indicates accelerated buying pressure and a possibility of prolonged recovery.

Key Points: 

• Long-wick rejection candles at $0.38 resistance indicate the market participants are witnessing intense supply pressure from above.
• A potential reversal from the $0.38 resistance could trigger a temporary pullback of 4-5%.
• The intraday trading volume in the ADA coin is $398.2 Million, indicating a 13% gain

Source- Tradingview

On March 21st, the ADA price offered a decisive breakout from $0.355 resistance releasing the build-up buying pressure. The resumed recovery pushed the ADA price 7.5% higher to hit the immediate resistance of the $0.38 mark.

However, over the last two days, the daily chart showed a long-wick rejection candle at the $0.38 barrier indicating the sellers are aggressively defending this level. The high supply pressure brings forward a possibility of another minor pullback.

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By the press time, the ADA price trades at the $0.37 mark with an intraday gain of 0.43%. This potential correction may tumble the prices by 4% and retest the breached $0.38 resistance as potential support.

While the overall market trend remains bullish this temporary correction could offer an accumulation opportunity to long-term traders.

Technical Indicator. 

Relative Strength Index: the daily RSI slope surged above the midline indicating market sentiment supports a prolonged bullish recovery.

EMA’s: The recently reclaimed the daily EMAs(20, 50, and 100) moving near the $0.375 mark creating a strong accumulation zone for buyers.

Cardano Coin Price Intraday Levels

• Spot price: $0.376
• Trend: Bullish
• Volatility: Medium
• Resistance level- $0.38 and $0.42
• Support level- $0.355 and $0.32