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
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