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ADA Price Prediction: Amid the increasing negativity in the crypto market, the Cardano price showcased a V-top reversal from the peak of $0.46. This correction tumbled the altcoin by 18% and plunged to 32.8% Fibonacci retracement level at local support of $0.377. A retracement to the aforementioned FIB level is considered healthy and increases the possibility of uptrend resumption.
Key Points:
- The formation of a double bottom pattern could trigger a fresh recovery in Cardano price
- The post-correction recovery could surge the ADA price 16% higher to challenge the $0.46 swing high
- The intraday trading volume in the ADA coin is $289.5 Million, indicating an 8.6% gain
Source- Tradingview
The ongoing correction phase in Cardano price has taken a minor halt at the combined support of $0.377 and 38.2% FIB level. Moreover, the sideways movement above the mentioned support reveals the formation of a double-bottom pattern.
A reversal pattern at crucial support increases the possibility for ADA price to resume the prevailing recovery rally. By the press time, the Cardano price traded at $0.385 with an intraday gain of 0.13%.
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With sustained buying the coin price is likely to breach the $0.3977 neckline resistance, which will accelerate the underlying bullish momentum. If the potential reversal pierces the $0.41 resistance at the 23.8 FIB level, the buyers will raise the price another 12.75% to hit the $0.46 peak.
Conversely, if the buyers failed to sustain above $0.41, the Cardano price will remain under the threat of further correction and a breakdown below the 38.2% retracement level.
Technical Indicator
Relative Strength Index: the 4-hour chart RSI slope showing evident bullish divergence gives additional confirmation for price recovery.
Exponential Moving Average: the crucial EMAs(50, 100, and 200) accumulated between the $0.41 and $0.397 barrier accentuate the high resistance zone which needs to be breached for further recovery.
Cardano Coin Price Intraday Levels
- Spot price: $0.395
- Trend: Bullish
- Volatility: Medium
- Resistance level- $0.397 and $0.4
- Support level- $0.382 and $0.378
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.
Source: https://coingape.com/markets/ada-price-prediction-healthy-retracement-to-fibonacci-prepares-cardano-price-for-16/