Cardano Price need this Resistance Breakout to Trigger a New Recovery Rally; Is $0.5 Within Reach? 

Amid the recent correction phase in the crypto market, the ADA price showed a price downfall for nearly a month and plunged to local support of $0.35. However, the daily chart shows the aforementioned support is also aligned with the lower trendline of the channel pattern. This pattern has carried a recovery rally in the Cardano coin for nearly four months, offering a great pullback accumulation opportunity at a lower trendline. Here’s how this pattern may influence the future trends of ADA.

Key Points: 

• A channel pattern governs the ongoing recovery in ADA price
• A bearish crossover between the 20-and-50-day may encourage a sideways move for a few more sessions.
• The intraday trading volume in the ADA coin is $189.3 Million, indicating a 13% loss

Source- Tradingview

While the crypto market has witnessed significant selling in the last few days, the Cardano price turned sideways above the support trendline of the channel pattern. Amid this consolidation, the ADA price showed several lower price rejection candles, showing the failed attempts of sellers to breach the support trendline.

These rejection candles reflect a higher possibility of a bullish reversal from the channel support. By the press time, the ADA price traded at $0.358 and with an intraday loss of 0.31%. 

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However, for a better confirmation of a bullish reversal, the ADA price should breach the immediate resistance of $0.376-$0.373 shown in the above chart. A daily candle closing above this barrier will enter an opportunity for interested traders.

In an ideal condition, a reversal from the channel support trendline usually drives a rally to the overhead trendline. Thus, the ADA price could witness a potential growth of around 40% to hit the $0.5 mark.

On a contrary note, a breakdown below the support trendline will undermine the bullish thesis and tumble the prices lower.

Technical Indicator

Moving Average Convergence Divergence: The MACD(blue) and a signal(orange) falling lower into the bearish territory reflects a sustained bear trend.

Exponential Moving Average: 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 level- $0.37 and $0.378
• Support level- $0.35 and $0.324