The aggressive decline in Cardano price, which began in early June, appears to be losing momentum. Over the past week, the coin has displayed short-bodied candles, signifying a weakening selling pressure. It raises the question: can the Cardano price approach the $0.24 support level to regain bullish momentum, or is there more to the price correction?
It is important to note that the overall market trend remains bearish, and the Cardano price may be subjected to further downward pressure. This could cause the coin to retest the high accumulation zone of $0.24, where it may face heavy supply pressure as it approaches the downsloping trendline. Currently, the intraday trading volume of the ADA coin stands at $140.3 million, demonstrating a 28.9% gain.
On June 10th, Cardano showed a long-tail rejection candle at the $0.24 support level, indicating that buyers were actively accumulating. After a minor pullback, the prices are now reapproaching the aforementioned support in an attempt to rekindle the bullish pressure.
At the time of writing, the ADA price trades at $0.258, suffering an intraday loss of 0.92%. The decreasing prices, coupled with a drop in trading volume, signal a lack of conviction in sellers and a higher likelihood for a bullish reversal. Consequently, the altcoin price could fall by 6.5% and retest the monthly support level of $0.24. Should this happen, the Cardano price has a high chance of experiencing a bullish reversal from the support level, enticing interested traders with a potential dip opportunity.
However, the Cardano buyers must breach the overhead trendline to regain a strong foothold for a further rally. If the price manages to break out above this trendline, it will likely bolster a recovery rally above $0.35.
Other technical indicators also suggest that a change may be on the horizon. The high value of the Average Directional Index (ADX) slope reflects the current downturn’s instability, indicating the possibility of consolidation or recovery. Additionally, the 20-day Exponential Moving Average (EMA), hovering around $0.3, contributes to the resistance strength of this barrier.
Despite these signs pointing to potential recovery, it is crucial to conduct thorough market research before investing in cryptocurrencies. The content presented here, along with the opinions of the author, is subject to market conditions and should not be the sole basis for your investment decisions. The author, the publication, and any associated parties hold no responsibility for individual financial losses due to investments made in cryptocurrencies.
Source: Coingape
