- Cardano (ADA) recently faced significant downward pressure, testing the critical $0.360 support zone.
- The cryptocurrency is now showing signs of recovery, with the potential to attempt breaking through the $0.400 resistance level.
- Notably, a bullish trend line is forming with support around $0.3760, indicating a possible upward momentum if the $0.400 barrier is breached.
Cardano shows recovery potential amid bearish momentum; will it succeed in breaking through the $0.400 resistance?
Cardano Price Dips Below Key Levels
In the wake of broader market downturns affecting major cryptocurrencies like Bitcoin and Ethereum, Cardano (ADA) has also experienced a notable decline. After failing to sustain above the $0.450 mark, ADA fell below the $0.400 support level, eventually testing the $0.360 floor.
The recent trough at $0.360 initiated a minor recovery phase, pushing prices above the $0.3750 region. This uptrend allowed ADA to reclaim the 50% Fibonacci retracement level from its descent between the $0.4204 peak and the $0.3600 low.
Potential Rebound Indicators
An emerging bullish trend line offers hope, with support identified near the $0.3760 level on the ADA/USD hourly chart. However, the journey upward is impeded by multiple resistance levels. ADA remains under the $0.400 benchmark and the 100-hourly simple moving average, presenting a significant challenge.
Immediate resistance is positioned around the $0.3980 zone, aligning with the 61.8% Fibonacci retracement level of the prior decline from $0.4204 to $0.3600. The critical resistance of $0.400 must be surpassed to sustain the upward momentum. Overcoming this resistance opens the path to the next major obstacle at $0.410, potentially igniting a robust rally towards $0.4250 or even $0.450.
Possible Risks of Further Decline
If ADA fails to secure a position above the $0.400 resistance, it may face renewed bearish pressure. The immediate support area lies at $0.3850, with stronger support around the $0.380 level, reinforced by the bullish trend line. A decisive break below these levels could pave the way for a downturn towards $0.3650 or even deeper to $0.360 support.
Market watchers should heed the technical indicators: the hourly MACD for ADA/USD is gaining traction in the bullish zone, while the hourly RSI has moved above the 50 threshold, signaling a potential shift in market sentiment.
Conclusion
In summary, Cardano (ADA) is at a critical juncture, balancing between recovery and further declines. The price action in the coming days will be crucial in determining whether ADA can overcome the formidable $0.400 resistance or succumb to renewed selling pressure. Investors should closely monitor these key levels and indicators to navigate the potential opportunities and risks effectively.
