Cardano Eyes Rally to $0.60 if This Support Holds

Cardano price dips to $0.4484, falling below moving averages, with potential support at $0.427 and a possible rally to $0.60 should this support hold.

The Cardano token has encountered modest bearish pressure over the past few days. After failing to surpass the 50-day moving average at $0.475 on Monday, which acted as a low-level resistance, ADA has exhibited three consecutive days of downward movement.

Following this failed attempt, ADA broke below the 20-day moving average, currently around $0.462. This recent decline has raised concerns among traders and analysts about sustained dips.

However, should the 20-MA cross above the 50-MA, it could signal a bullish trend reversal and suggest a potential price recovery for ADA in the near future.

ADA Price Action

As of press time, ADA trades for $0.4484, reflecting a 0.48% decline for the day. The intraday market cap has decreased by the same percentage, now standing at $16.01 billion. This places ADA as the ninth largest crypto asset.

This position represents a recovery from earlier in the week when Shiba Inu briefly surpassed ADA’s market cap, relegating it to the 11th position, as reported by The Crypto Basic on Wednesday.

In line with the bearish sentiment, ADA’s 24-hour trading volume has dropped by over 23%, falling to $290.92 million. These market metrics underscore the persistent bearish outlook and the difficulties ADA faces in regaining bullish momentum.

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Will $0.427 Support Spark a Rally to $0.60?

On the daily chart, the ADA/USD pair is currently trending within the red zone of the regression channel, which signifies a bearish trend. This suggests that ADA’s price will likely continue its downward trajectory in the short term, potentially seeking support at the $0.427 level.

Should this support fail to hold, the token could further decline towards the $0.40 mark and possibly lower. Conversely, if the $0.427 support level proves strong, ADA could experience a rally.

A successful hold at this level could propel the price towards the 23.6% Fibonacci level at $0.50. Furthermore, breaking above this crucial resistance might signal a robust bullish run, potentially pushing ADA to $0.60. Such a run would mark a 41.57% increase from its current support.