After a brief 3-day bear run, Cardano (ADA) is eyeing a potential double-bottom reversal, which could see the price bounce back to $0.41.
Amid a refreshing recovery run in the crypto market after multiple correction days, Cardano also marks a reversal. The intraday recovery increases the chances of reversal for Cardano with a double-bottom reversal.
Will this bullish trend in Cardano bounce back from the crucial support zone near $0.324? Let’s find out.
Cardano’s Double Bottom Reversal
In the 4-hour chart, the Cardano price action shows a sideways trend. Furthermore, the bearish influence over the consolidation range is gradually increasing, warning of a bearish breakdown.
Recently, Cardano broke below the $0.331 support zone for the second time in the past 10 days. This bearish outcome follows a double-top reversal at the $0.36 resistance level, which aligns with the 50% Fibonacci retracement.
The downturn led to three consecutive days of bearish closes, resulting in an 8.94% drop from $0.358 to $0.326. As of now, Cardano has shown a modest intraday recovery of 1.23%, taking support near the $0.324 zone.
This recovery has completed a morning star pattern, and the price is testing the previously broken $0.331 support level. More importantly, this setup hints at a potential double-bottom reversal, with $0.324 acting as the baseline.
Additionally, the MACD and signal lines are close to crossing bullish, supporting the upside potential. The RSI has also started to recover from the oversold zone and is crossing above its 14-day simple moving average (SMA), signaling increasing bullish momentum.
Will Cardano Price Surge to $0.40?
As the likelihood of a positive cycle within the current consolidation range grows, the price action traders should watch for is a breakout above $0.332. A move above this level could trigger further gains.
According to the Fibonacci retracement levels, an upward continuation could first challenge the 23.6% level at $0.343, followed by the 50% level at $0.364.
A complete positive cycle within the consolidation range could lead to an approximate 11% surge from the current price to $0.364. Optimistically, a bullish breakout could target higher resistance levels at $0.39 and $0.41, which correspond to the 78.6% and 100% Fibonacci levels, respectively.
Conversely, if Cardano falls below the $0.324 support zone, the price could retest the previous low around $0.315 or even the psychological level of $0.30.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
Source: https://thecryptobasic.com/2024/11/05/is-cardano-poised-for-a-double-bottom-reversal-to-0-41/?utm_source=rss&utm_medium=rss&utm_campaign=is-cardano-poised-for-a-double-bottom-reversal-to-0-41