Cardano (ADA) Struggles to Build Bullish Momentum: Will It Turn Around?

The price of Cardano has recently dipped beneath the $0.3550 level, indicating a new drop. At the moment, it’s holding steady above $0.3400, suggesting it may try to bounce back.

  • ADA price started a downward move below the $0.3500 support level.
  • The price is trading below $0.3550 and the 100-hourly simple moving average.
  • There was a break below a key bullish trend line with support at $0.3600 on the hourly chart of the ADA/USD pair (data source from Kraken).
  • The pair could attempt a recovery wave if it clears the $0.3585 resistance zone.

Cardano Price Consolidates Losses

Following its attempt to break through the $0.3685 barrier, Cardano found it difficult to push further upwards. Consequently, ADA reached a temporary peak before initiating a new downward trend, similar to Bitcoin and Ethereum. The price dropped significantly below the support levels of $0.3550 and $0.3500.

On the hourly chart of the ADA/USD pair, there was a significant drop below a crucial bullish trend line that previously held at $0.3600. The price fell even further to around $0.3440 before the bulls reappeared. A low was set at $0.3420 and now, we’re seeing a correction of the losses. There was a brief move above the $0.3480 level following this correction.

In simpler terms, the cost for Cardano has surpassed a significant level of resistance (23.6% Fibonacci retracement level), which is derived from the downward movement from its peak at $0.3685 to its trough at $0.3420. Now, the price of Cardano is found below $0.3550 and also beneath the 100-hour moving average.

On the positive side, potential obstacles for the price increase could arise around the $0.3550 area or at the 50% Fibonacci retracement point of the decline from the peak of $0.3685 to the trough of $0.3420. Initially, resistance may be met at approximately $0.3585, with a more significant hurdle potentially appearing at $0.3685.

Cardano (ADA) Struggles to Build Bullish Momentum: Will It Turn Around?

As a researcher analyzing the market, if the price manages to break through the resistance level of $0.3685, I expect it to initiate a robust upward trend. In such a scenario, the price could potentially ascend towards the $0.3780 region. Further gains might prompt another surge toward $0.3950.

Another Decline in ADA?

If the value of Cardano doesn’t manage to surpass the $0.3550 barrier, there might be a fresh drop in its price. The nearest support lies around the $0.3480 mark, should it decline.

If the price falls below the $0.3420 mark, it could lead to a potential drop towards $0.3250. However, further support may be found around $0.3120, which could potentially encourage buyers to re-enter the market.

Technical Indicators

Hourly MACD – The MACD for ADA/USD is losing momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for ADA/USD is now below the 50 level.

Major Support Levels – $0.3450 and $0.3420.

Major Resistance Levels – $0.3550 and $0.3685.

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2024-10-24 08:11