The recent surge in the pioneer cryptocurrency, Bitcoin, has created a sense of recovery rally in major altcoins, including the seventh largest crypto coin, Cardano. As a result, Cardano managed to hold the $0.25 support, showing an upswing in the daily time frame chart. This bullish reversal caused a 17.6% surge in prices, hitting the psychological barrier of $0.3. However, the question remains: is Cardano ready for further growth, or is another correction looming just around the corner?
At the moment, the Cardano coin price trades at $0.29 and wavers below the $0.3 barrier. The higher price rejection candle at $0.3 reflects active sellers who may undermine buyers’ attempts to rise higher. This may indicate ongoing recovery in Cardano is mainly driven by investors accumulating at discount prices, as well as improved market sentiment due to Bitcoin’s rise. Potential buyers are advised to wait for better confirmation that reflects the sustainability of buyers at higher prices before making any moves.
If the supply pressure at $0.3 increases, the Cardano coin could experience a bearish reversal, retesting the $0.256 support. However, should the Cardano price successfully breach the $0.3 resistance with a daily candle closing above it, the coin price could potentially rise by 12% and face immediate resistance from a downsloping trendline. This dynamic resistance has restricted bullish growth for over two months, making its breakout a key signal for a trend reversal.
The daily Relative Strength Index (RSI) slope rises above the 40% slope, reflecting an improvement in bullish momentum that can support a significant recovery. Meanwhile, the midline of the Bollinger Band indicator offers an additional barrier against buyers at $0.3.
As the crypto market remains subject to fluctuations and variable conditions, it is crucial to conduct thorough research before investing in cryptocurrencies. Neither the author nor the publication holds any responsibility for personal financial loss resulting from investment decisions. With Cardano’s current position, investors must carefully weigh the pros and cons before making their moves, taking into account the increased market sentiment and possible sustainability of buyers at higher prices.
Source: Coingape
