Will ADA Price Recovery Extend to $0.3 Mark?

In the wake of a late-September recovery across the cryptocurrency market, the ADA price saw a significant bounce from its multi-month support at $0.24. This resurgence culminated in a 12.6% weekly growth, propelling altcoin to a peak of $0.269. Notably, during this ascent, the buyers breached two pivotal resistance levels: a downsloping trendline that encapsulated the correction of the past two months, and a horizontal barrier at $0.258. Can this breakout signal the onset of a lasting recovery?

Also Read: Has Hydra Failed? Cardano Founder Addresses Misinformation On Hydra Scaling

Is Current Recovery Sustainable?

• A bullish breakout from the $0.25 barrier sets a quick 6% jump 
• The $0.28 has remained a strong supply zone for coin traders.
• The intraday trading volume in the ADA coin is $107 Million, indicating a 12% gain

Source- Tradingview

On October 1st, the Cardano price decisively breached the $0.258 horizontal resistance. Piercing this long-standing obstacle was anticipated to amplify bullish sentiment around the coin. Nonetheless, the broader market hesitancy caused a slight retracement on the daily chart. Amid this downturn, October 4th’s trading resulted in a long-tailed rejection candlestick, emphasizing a robust defense mounted by buyers at the newly established support.

With the newfound support, the ADA price rallied by 2.5% over the subsequent two days, positioning itself at a current trading value of $0.265. If this bullish momentum persists, we might witness a further ascent of roughly 6% aiming for the $0.28 level. 

It’s worth noting that the aforementioned level, coupled with the long-coming resistance trendline, creates a high supply zone for crypto holders. This resistance barrier has stood strong for the last six months and could assist buyers in recuperating selling momentum.

[converter id=”ada-cardano” url=”https://coingape.com/price/converter/cardano-to-usd/?amount=1″]

Key Resistance Breakout Sets $0.37 Target

Although the short-term outlook seems optimistic, the more extended trend for Cardano coin remains bearish as long as the overarching trendline resistance remains unbroken. For the ADA price to carry a genuine and lasting recovery, it’s imperative that buyers facilitate a clear breakout above this resistance, confirmed by a daily candle close. Achieving this would provide a more bullish trajectory, with prospective targets hovering around the $0.37 mark

• Exponential Moving Average: The recently reclaimed 20-and-50 daily EMA offers an additional set of supports for coin buyers in this recovery.
• Average Directional Index: The ADX slopes rising around the 21% mark reflect the buyers have enough strength to carry further rally.