Cardano Price Analysis: Bottom Formation at $0.4 Sees $ADA to Rally 15%
Highlights
- Demand pressure at the $0.4 floor hints at a potential reversal point for ADA price.
- The midline of the Bollinger band indicator acts as constant resistance for buyers during occasional pullback.
- The intraday trading volume in the ADA coin is $316.6 Million, indicating a 31% loss.
Cardano Price Analysis: ADA, the native cryptocurrency of the Cardano ecosystem has stalled its correction trend at the support of $0.428. The demand pressure at this floor is evidenced by the multiple lower-price rejection candles in the daily chart observed within three weeks. Will Bitcoin price attempt to regain $60000, bolster ADA price to offer a sustainable bottom above $0.4, and return to the recovery trend?
Also Read: Cardano Outperforms in Whale Activity — What This Means for ADA Price
Is $ADA Ready to Break the $0.5 Barrier?
The short-term outlook for the Cardano price remains bearish, as indicated by a descending trendline on the daily chart. This dynamic resistance has significantly impacted the altcoin, driving its value down from $0.81 to $0.39, marking a substantial 50% decline
However, the ADA price witnessed a surge in demand pressure above $0.4 preventing the asset from further correction. Along with the Bitcoin price reversal from $56500, the ADA price reverted from 9% to reach the current trading price of $0.456.
The upswing tends to breach the overhead trendline signalling an early change in market dynamic from selling on rallies to buying on dips.
Moreover, in a recent tweet by noted cryptocurrency trader alicharts, a potentially bullish development for Cardano (ADA) was discussed. Utilizing the TD Sequential indicator, which is respected for its ability to identify turning points in price trends, alicharts pointed out a buy signal on the ADA daily chart. This indicator suggests a possible end to the recent corrective phase of ADA, indicating a rebound in price could occur within the next one to four days.
The TD Sequential, which timed the #Cardano top, now presents a buy signal on the #ADA daily chart. It anticipates a one to four daily candlesticks rebound that could put an end to the $ADA corrective phase. pic.twitter.com/QRmYJVfk2b
— Ali (@ali_charts) May 2, 2024
Thus, a daily candle closing above the overhead trendline will bolster the recovery theory and allow buyers to challenge the $0.52 barrier.
A potential breakout from this last swing high ($0.52) will change the Dow theory of downtrend projecting an initial sign of trend reversal. With sustained buying, the Cardano coin may chase a potential target of $0.62, followed by $0.81.
Technical Indicator:
- Relative Strength Index: The higher low formation in the daily RSI slope accentuates the rising bullish momentum for ADA price around the $0.4 level, increasing the pontential of a bullish reversal.
- BB Indicator: The narrow range of the Bollinger band indicator highlights an increase in market uncertainty or potential consolidation before the next directional move.
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