Will this New Recovery Cycle in $ADA Price Reach $0.5?

Cardano Price Prediction: Amid the recent uncertainty in the crypto market, the Cardano price went sideways above the support trendline of the channel pattern. Over the past three weeks, the market participants actively accumulated this dynamic support which led to a bullish reversal in the daily chart. In theory, a bullish reversal from this trendline could set a new recovery cycle that drives the coin price back to the overhead trendline. Is this the right time to enter?

Also Read: Cardano Completes Major Developments This Week, ADA Price Rally Ahead?

Cardno Price Daily Chart

• A reversal within the channel pattern recuperates the bullish momentum in ADA price.
• A breakout above the $0.378 barrier offers a strong footing to continue the recovery rally forward
• The intraday trading volume in the ADA coin is $185.5 Million, indicating a 4.9% gain

Source- Tradingview

On 28th May, the ADA price breached a horizontal resistance level of $0.378. After the bullish reversal from ascending trendline, this breakout of immediate resistance adds more conviction in long positional trade.

By the press time, the Cardano price exchanged hands at $0.378 with an intraday loss of 1.1%. The red daily candle retests the breached resistance to ensure price sustainability at higher levels and offer an entry opportunity to interested traders.

If the buyers manage to hold above the $0.378 mark, the new recovery rally may push the prices nearly 32% higher to reach $0.5 psychological resistance.

Will Cardano’s Price Recovery to $0.5?

Under the development of a channel pattern, the asset price keeps bouncing off the parallel walking trendlines. Thus, if the buying momentum persists, the aforementioned reversal from the lower trendline may push the price back to the above trendline situated near the $0.5 mark. However, this potential rally may face supply pressure near the $0.42 and $0.46 levels.

• Direction Moving Index: A bullish crossover between the DI+(blue) and DI-(orange) slope indicates a bullish trend sentiment in the market. However, the downsloping ADX price reflects the bull still lacking strength and therefore, new buyers must reclaim cautions for a fakeout possibility.
• Exponential Moving Average: With the recent price jump, the ADA price reclaimed the daily EMAs(20, 50, and 100) which now may surge as viable support to lead further rallies.