Potential Reversal Ahead as Multiple Supports Hold Firm at $0.3

Cardano Price Analysis: While the crypto market leaders, Bitcoin and Ethereum are trapped in uncertainty, the 7th largest cryptocurrency Cardano struggles in a correction phase. Within a fortnight the coin price plunged from $0.379 to a current price of $0.3, registering a 21% loss. The buyers facing a challenge to build bullish momentum for a bounce back, indicating the ADA price could witness a longer correction.

Also Read: Cardano’s Light Wallet Lace Gets Crucial Updates

Cardano Price Daily Chart

• The $0.3 aligned with other technical support creates a high area of interest(AOI)
• A Cardano price above 50% retracement level indicates the overall market trend bullish
• The intraday trading volume in the ADA coin is $236.6 Million, indicating a 32% gain.

Source- Tradingview

Over the week, the Cardano price showed two failed attempts to rebound from the $0.3 psychological support with the morning star candle pattern. This candle setup is an excellent sign of reversal but the lack of substantial follow-through from buyers raises concerns about their commitment for recovery. 

Despite the challenges, the ongoing recovery in ADA price is expected to persist as long as the ascending trendline remains intact. The dynamic support, which has been maintaining a pattern of higher highs and lows for over a month, could provide additional strength for a recovery push.

The anticipated reversal should offer a breakout above the immediate resistance of $0.334 to signal uptrend continuation. If the bullish momentum persists, the Cardano price could surpass the $0.35 barrier, followed by $0.382, and $0.42.

Will ADA Price Fall Back to $0.26?

In case the increasing uncertainty leads to negative sentiment in the market, the Cardano price could give a breakdown below the lower trendline. A daily closing below the dynamic support will offset the recovery phase and pull the altcoin price back to $0.26.

• Relative Strength Index: The daily-RSI slope falling the 50% midline indicates the weakening bullish momentum and a higher possibility for breakdown.
• Exponential Moving Average: The 100-and-200-day EMA continues to offer dynamic resistance to rising coin prices.