Price Analysis

Cardano Price Analysis: Bottom Formation at $0.4 Sees $ADA to Rally 15%

Cardano Price Analysis: The ADA buyers aggressively defending the $0.4 psychological level hints at the formation of a local bottom. Buy this dip?
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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

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Is $ADA Ready to Break the $0.5 Barrier?

Cardano Price Analysis| Tradingview

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.

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.

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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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Sahil Mahadik

Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

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