Cardano Price Recovers 15%; Will ADA price continue the rise? - BitcoinEthereumNews.com

Cardano price recovered 15% from the recent low and showed signs of bullish trend reversal after falling for 22 consecutive days. ADA price took support near the 2 months low and formed a bullish reversal pattern indicating that responsive buyers are getting active at lower levels. Moreover, over the past few days, buying volume is increasing suggesting that some genuine buyers are accumulating ADA crypto from lower levels. 

ADA price is currently trading at $0.3423 with an intraday loss of -0.29% and the volume to market cap ratio is at 0.0444. The pair of ADA/BTC trading at $0.00001410 with an intraday loss of -1.05%.

Cardano price has witnessed high buying volume in the beginning of the January. Prices succeed in breaking out of the 50 day EMA which showcases a short term trend reversal. Later, ADA crypto price picked up positive momentum and rose upward, forming higher high candles. 

ADA price rallied approximately 40% reaching the Pre FTX-collapse level. However, at the same level is the downward sloping 200 day EMA, which turned out to be a strong resistance for the bulls. Mid February, ADA crypto got rejected from the 200 day EMA and price reverted back in the downward direction. ADA price started declining by forming lower low candles for 22 consecutive sessions which created a concern and hurted investor sentiment.

Will Cardano price Reclimb the 200 day EMA this time?

Cardano price defends $0.3000 level and bounces back with higher momentum indicating that $0.3000 will act as an immediate support for the coming session. However, if the situation gets worse and ADA price drops below $0.3000, then the  bears can drag it down toward a yearly low at $0.2390. On the other hand, If ADA continues the upward momentum and holds the $0.3500 level, then the probability of reclimbing the 200 day EMA will substantially increase. 

The MACD curve is on the way to generate a positive crossover indicating upward momentum might continue for some more time. The RSI at 47 sloping down denotes the balance between bullish and bearish positions. 

Conclusion 

Cardano price recovered 15% from the recent low and buying volume is also rising showing signs of short term trend reversal. However, technical analysis suggests that ADA price will gain momentum only if it holds the $0.3500 level. Till then, ADA price is expected to consolidate in the narrow range.

Technical levels

Resistance levels : $0.4215 and $0.5000

Support levels : $0.3000 and $0.2390

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.