For more than a month, a downward-sloping trendline produced a correction phase in Cardano’s price. Under the influence of this trendline, the ADA price fell by 20% from the peak of $0.46 to the support trendline of the channel pattern at $0.355. Amid the recent market uncertainty, the coin’s price breached the overhead trendline, indicating a recovery opportunity for traders.
A bullish breakout from the $0.376 resistance could bring relief to the ADA price amidst growing market uncertainty. Additionally, the recently breached 20 EMA of the 4-hour chart now flips to become a suitable support level for buyers. The intraday trading volume in ADA stands at $174.4 million, representing a 51% gain.
While the crypto market struggled with indecisiveness, Cardano’s price remained in a sideways trend above the channel pattern’s support trendline. This chart pattern has carried an upward trend for the past 4 hours, providing a favorable dip opportunity as the price rebounds from the lower trendline.
Buyers, backed by strong support from the channel trendline, managed to breach the resistance that carried the correction phase, further confirming the potential for a bullish upswing.
At the time of writing, the ADA price is trading at $0.37, experiencing an intraday loss of 0.11%. If buying pressure continues, the coin’s price may break through the immediate resistance of $0.376, offering entry opportunities to traders.
With the above-mentioned support reversal, resistance trendline breakout, and a potential break above the horizontal resistance of $0.37, a recovery opportunity in Cardano appears strongly possible.
A potential rally could revisit the channel’s upper trendline, signifying a possible 30-35% rally in the coming months, aiming for the $0.49-$0.5 price range.
In terms of technical indicators, the Relative Strength Index’s (RSI) explosive growth in the 4-hour slope reflects the increasing buying momentum in ADA. The Exponential Moving Averages (EMA) of 100 moves near $0.37, emphasizing the importance of this resistance level.
Cardano’s spot price at $0.37 shows a downward trend with moderate volatility. The resistance levels lie at $0.37 and $0.39, while support levels sit at $0.355 and $0.334.
The presented content may include personal opinions of the author, and market conditions should always be considered. Conduct thorough market research before investing in cryptocurrencies, as the author or publication does not hold any responsibility for personal financial losses.
Source: Coingape
