ADA Price Hits Multi-Month Support of $0.24; Ready to Rebound?

Cardano coin price has undoubtedly been on a rollercoaster these past two months. After peaking at $0.379, it plummeted to the recent lows of $0.2367, shedding a hefty 37.6% of its market value. As we zoom into the daily chart, a distinct pattern emerges – a down-sloping trendline that seems to be giving ADA a tough time. This trendline has played the role of a staunch gatekeeper, repeatedly repelling buyer’s attempts to break free. The coin price reverted thrice from this resistance making it evident that traders encounter a formidable wall of sellers here. Under the influence of this dynamic resistance, will the ADA price extend the correction trend lower?

Also Read: ADA Price Prediction: Will Cardano Correction Extend to $0.2 in September?

A Potential Trendline Breakout will Push ADA for $0.3 Mark

• The coin buyers may witness increased buying pressure at $0.24
• A bullish breakout from the overhead trendline will bolster a recovery sentiment
• The intraday trading volume in the ADA coin is $128 Million, indicating a 7% gain

Source- Tradingview

Recent market dynamics combined with the overhead supply pressure have pushed ADA to test the multi-month support of $0.24 as of September 11th. However, a glimmer of optimism emerged today as this altcoin registered a 2% bump, lifting its trading price to $0.246.

For this positive blip to materialize into a sustainable recovery, the buyers need to muster enough strength to shatter the overhead resistance trendline. Clearing this hurdle could offer buyers suitable support to rise higher.

The post-breakout rally would likely surge the prices to $0.28 and subsequently the $0.3 regions.

Is Correction Trend Poised to Hit $0.2?

Currently, the Cardano price trajectory appears to be dictated by two significant factors: the downward trendline overhead and the crucial $0.24 support. As long as these elements remain influential, the price action may be confined to a tight range, oscillating sideways. However, if the bearish momentum overwhelms ADA and it slips below the $0.24 threshold (especially with a daily candle closure), the price could hit $0.22, followed by $0.2.

• Relative Strength Index: Despite the recent price trends, a rising daily RSI suggests an increasing bullish momentum, hinting at a potential upward reversal.
• Supertrend: A red film projected in the daily chart reflects the ongoing trend is aggressively bearish.