$ADA Eyes 15% Upswing From $0.4 Bottom

Cardano Price Analysis: ADA, the native cryptocurrency of the Cardano ecosystem has stalled its correction trend at the support of $0.428. The demand pressure at this floor is evidenced by the multiple lower-price rejection candles in the daily chart observed within three weeks. Will Bitcoin price attempt to regain $60000, bolster ADA price to offer a sustainable bottom above $0.4, and return to the recovery trend?

Also Read: Cardano Outperforms in Whale Activity — What This Means for ADA Price

Is $ADA Ready to Break the $0.5 Barrier?

The short-term outlook for the Cardano price remains bearish, as indicated by a descending trendline on the daily chart. This dynamic resistance has significantly impacted the altcoin, driving its value down from $0.81 to $0.39, marking a substantial 50% decline

However, the ADA price witnessed a surge in demand pressure above $0.4 preventing the asset from further correction. Along with the Bitcoin price reversal from $56500, the ADA price reverted from 9% to reach the current trading price of $0.456.

The upswing tends to breach the overhead trendline signalling an early change in market dynamic from selling on rallies to buying on dips.

Moreover, in a recent tweet by noted cryptocurrency trader alicharts, a potentially bullish development for Cardano (ADA) was discussed. Utilizing the TD Sequential indicator, which is respected for its ability to identify turning points in price trends, alicharts pointed out a buy signal on the ADA daily chart. This indicator suggests a possible end to the recent corrective phase of ADA, indicating a rebound in price could occur within the next one to four days.

The TD Sequential, which timed the #Cardano top, now presents a buy signal on the #ADA daily chart. It anticipates a one to four daily candlesticks rebound that could put an end to the $ADA corrective phase. pic.twitter.com/QRmYJVfk2b

— Ali (@ali_charts) May 2, 2024

Thus, a daily candle closing above the overhead trendline will bolster the recovery theory and allow buyers to challenge the $0.52 barrier. 

A potential breakout from this last swing high ($0.52) will change the Dow theory of downtrend projecting an initial sign of trend reversal. With sustained buying, the Cardano coin may chase a potential target of $0.62, followed by $0.81.

Technical Indicator:

• Relative Strength Index: The higher low formation in the daily RSI slope accentuates the rising bullish momentum for ADA price around the $0.4 level, increasing the pontential of a bullish reversal.
• BB Indicator: The narrow range of the Bollinger band indicator highlights an increase in market uncertainty or potential consolidation before the next directional move.

Related Articles

✓ Share:

Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.