Cardano (ADA) at a Pivotal Moment: Will It Break Free from the $0.400 Resistance?
Cardano (ADA) has recently faced significant downward pressure, testing the critical $0.360 support zone. However, the cryptocurrency is now showing signs of recovery, with the potential to attempt breaking...
Cardano (ADA) has recently faced significant downward pressure, testing the critical $0.360 support zone. However, the cryptocurrency is now showing signs of recovery, with the potential to attempt breaking through the $0.400 resistance level.
Bullish Trend Line Formation
Notably, a bullish trend line is forming with support around $0.3760, indicating a possible upward momentum if the $0.400 barrier is breached.
Reclaiming 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.
Initiating a Minor Recovery Phase
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.
Overcoming the $0.400 Resistance
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.
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.
Positive 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.
Read Also: Will Cardano Outgrow Bitcoin? Charles Hoskinson Asserts
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.
Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.
Delegate Your Voting Power to FEED DRep in Cardano Governance.
DRep ID: drep12ukt4ctzmtf6l5rj76cddgf3dvuy0lfz7uky08jfvgr9ugaapz4 | We are driven to register as a DRep by our deep dedication to the Cardano ecosystem and our aspiration to take an active role in its development, ensuring that its progress stays true to the principles of decentralization, security, and community empowerment.DELEGATE VOTING POWER!
