ADA price showcased a retracement and witnessed profit booking from the top of $0.6700 amidst the positive sentiments in the market. However, the trend is bullish, and ADA may find a base for a rebound. Investors are waiting for a pullback to add fresh positions. Additionally, the Cardano coin has already been corrected and consolidated for a long time and is bullish, which is a positive sign for the following sessions.
ADA price is trading above the neutrality and is slowing near the 50-Day EMA mark. However, a falling channel is displayed on the charts. Still, instead of fear, buyers are taking a dip as an opportunity and waiting for a confirmation candle to add fresh long positions with a bounce-back. Per the technicals, Cardano price has exited the bearishness and is heading to retest the swing of $0.7000.
Cardano (ADA) was at $0.5470 at press time with an intraday drop of 0.66%, showing retracement in the recent sessions. Moreover, the trading volume increased by 1.80% to $328.52 Million, highlighting low investor interest. The pair of ADA/BTC was noted at 0.0000127 BTC, while the market cap is $20.01 Billion. Analysts are bullish and suggest that the ADA price will attain a rebound and may surpass $0.7000 soon.
ADA On Daily Chart Reflects Falling Channel
The ADA coin has undergone a correction on the daily charts and flipped from the bottom of $0.300 in the past weeks. Afterward, Cardano price persisted in riding on a recovery track and surged over 90%. Per the Fibonacci retracement levels, ADA price surged above the 50% zone but failed to sustain and is taking support on the 38.2% zone.
The relative strength index (RSI) curve slides from the top and reaches the oversold region, which signifies the selling pressure in the recent sessions. Moreover, the MACD indicator showed a bearish crossover and is directing retracement, which leads buyers to anxiety.
ADA On Weekly Chart Displays Double Bottom Breakout
The ADA coin showcased a double-bottom pattern breakout on the weekly charts and has attained momentum in recent sessions. However, after a massive rollover from the lows, the coin takes a break and halts at the 100-Day EMA mark. Meanwhile, the trend is strong, signifying the bullish bias, and investors are waiting for a rebound and are closely eyeing it.
Summary
Cardano (ADA) price was delivering a retracement inside the falling channel, forming the lower lows amidst the uptrend. However, the ADA coin is beyond the 200-day EMA, a positive sign, halting at a strong support zone. The dark clouds will clear soon, and the ADA coin may attain a rebound.
Technical Levels
Support Levels: $0.5300 and $0.5000
Resistance Levels: $0.6700 and $0.7500
Disclaimer
The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto or stocks comes with a risk of financial loss.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
Source: https://www.thecoinrepublic.com/2024/01/14/ada-price-prediction-will-ada-retest-0-500-or-take-a-u-turn/