The parabolic rally has pumped the Cardano(ADA) price by 45% within a fortnight. The coin retested a monthly resistance of $1.2 and is still struggling to overcome it. Therefore, a potential correction may stabilize the quick bull run provide a dip opportunity to traders.
Key points:
- ADA price could need minor correction before continuing the rally
- ADA chart shows the formation of rounding bottom pattern
- The intraday trading volume in the ADA coin is $116.3 Billion, indicating a 33.39% loss
Source- Tradingview
During the February sell-off, the ADA holder lost crucial yearly support of $1. As a result, the altcoin slumped 20% and hit near support of $0.78. However, the buyers strongly defended this support over the past month and tried to prevent any further losses.
The rising recovery sentiment across the crypto market has rebounded the coin price from $0.78 and breached the flipped $1 resistance. Along with the horizontal level, the coin chart also showed other important levels getting poked, like a long-coming resistance trendline and 50- DMA.
The recovery rally reached the $1.2 resistance and resembled a rounding bottom pattern. A bullish breakout from the overhead neckline could spike the buying pressure and tag the $1.6 mark.
Alternatively, the higher price rejection at this resistance hints the sellers could pull the ADA price back to the $1 mark, giving a retest to the breach resistance.
Technical Indicator
The recent recovery has breached two strong dynamic resistance of 50 and 100 DMAs. Moreover, the 100 DMA line is currently bolstering the coin price to breach the $1.2 without a correction.
The On-Balance-Volume (OBV) slope curving up highlights that the buyers are getting active in increasing the price higher.
- Resistance levels- $1.2, and $1.6
- Support levels-$1 and $0.78
Disclaimer
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.
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Source: https://coingape.com/markets/cardano-price-prediction-ada-buyers-retakes-1-mark-ready-to-buy/