Cardano Price Analysis: $0.5 Breakout May Extend ADA Recovery by 21%
On July 18th, the Cardano (ADA) price gave a decisive breakout from the falling parallel channel pattern, with a significant boost in volume activity. Earlier today, the post-retest rally showcased a 12% growth, which allowed it to rechallenge the $0.5 resistance. However, the sellers defending this level restrict buyers from reclaiming this level.
Key points:
- The ADA price faces supply pressure at a $0.5 resistance
- MACD indicator’s slopes on the verge of entering bullish theory bolster $0.5 breakout
- The intraday trading volume in the ADA coin is $1.07 Billion, indicating a 62.6% gain.
Source- Tradingview
In response to recent uncertainty in the crypto market, the ADA/USDT pair resonated in a falling parallel channel for more than a month. Furthermore, Under the pattern’s influence, the altcoin retested the May low of $0.4 and validated it as legitimate support.
Since last week, the market sentiment has seen improvement, which triggered a new recovery rally in ADA. On July 13th, the coin price rebounded from the $0.4 support and surged 32% high to the $0.5 mark.
Furthermore, the recovery rally in-between gave a bullish breakout from the falling channel, indicating the buyers are aiming to climb higher. However, the post-retest rally stalled at $0.5 resistance, and higher price rejection attached to the daily candle, indicates the supply pressure remains intact.
Thus, the possible reversal could plunge the coin price to $0.482 and continue the lateral walk for a few more sessions.
On a contrary note, if the buyers undermine the selling pressure and manage a daily candle closing above $0.5, the replenished bullish momentum may push the ADA price 21.5% higher to $0.66.
Technical Indicator
MACD indicator: the fast and slow lines tag the neckline of the neutral zone, offering a potential buy signal among crossover. Moreover, the rising green bars in the histogram chart show a sustained bullish momentum.
EMAs: since early April, the 20-and-50-day EMA has acted as dynamic resistance to ADA price. However, the recent recovery has flipped these resistances into viable support, assisting buyers in extending this rally.
- Resistance levels- $0.54, and $0.66
- Support levels- $0.482 and $0.45
- What’s Behind Ethereum’s Drop: Macro, TVL, DeFi & Liquidity Zones
- Bitcoin ETFs Record Biggest Daily Outflow Since August as OG Whales Cash Out
- CZ Trump Pardon: Binance Founder Denies Any Trump Family Ties
- Odds for December Rate Cut Soar to 71% After Michigan Consumer Sentiment Hits 2nd-Lowest in History
- Breaking: James Chanos Exits MSTR Short After Premium Drop
- After a 17% Jump, Is Litecoin Price Rebound Sustainable Amid Dominant Sell Activity?
- Cardano Price Soars 10% Amid Retail Accumulation: Will Bulls Target $1?
- Bitcoin Price: How Low BTC Could Fall by the End of 2025?
- Post-Giveaway Supply Shock: Impact on FUNToken’s Liquidity and Market Depth
- Aster Price Poised to Hit $2 as Coinbase Adds ASTER to Listing Roadmap
- Filecoin Price Rockets 51% as Grayscale’s FIL Holdings Hit Record High — What’s Next for FIL?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
