Will $0.3 Trigger the Next Downswing?

Cardano Price Prediction: In the last two weeks, the Cardano price has seen a significant recovery, fueled by a ‘Double Bottom’ pattern and a general uptrend in the broader crypto market. The coin has surged 23.38% from a monthly low of $0.24 to a current trading price of $0.296. However, can buyers maintain the upward amid the current market volatility?

Also Read: ADA’s Bullish Potential Hinges on $0.40 Breakout for Rally Towards $1

Will ADA Price Surpass $0.3 Barrier?

• A breakout above the $0.3 resistance could intensify the buying pressure
• A potential bullish crossover between the 20-and-100-day EMA could bolster the continuation of the current recovery.
• The intraday trading volume in the ADA coin is $127 Million, indicating a 23% loss

Source- Tradingview

Over the past week, the Cardano price has been struggling to break above the 200-day EMA, currently situated around $0.982. The long-wick rejections on the daily candles emphasize the presence of significant overhead supply, countering buyers’ efforts to propel the asset higher. 

If the selling pressure continues, the ADA price may undergo a slight retracement to recuperate the exhausted bullish momentum. According to the Fibonacci Retracement Tool, the buyers may find potential support levels stand at $0.284 (23.6% Fib), followed by $0.276 (38.2% Fib) to make a strong comeback.

Should the asset hold these levels, the buyers may rechallenge the psychological $0.3 barrier, which is also close to a long-standing resistance trendline. Investors should be cautious at this point, as a failure to break this dual resistance could mark a reversal point for sellers to retake control.

Dual Resistance Gives Correction Threat

While the short-term outlook for the ADA seems bullish, a potential rally to the $0.3 level could face significant selling pressure, due to the confluence with a descending resistance trendline. Historical data indicates that each retest of this level has led to a significant price correction. Hence, any signs of price rejection at this level could trigger a new correction phase for the Cardano coin.

• Relative Strength Index: The daily RSI at 78% suggests a strong bullish momentum but also indicates that the asset could be approaching overbought conditions.
• Exponential Moving Averages: The 200-day EMA acts as a significant resistance level and may also indicate that the overall trend sentiment for Cardano is still bearish.