Is Cardano (ADA) Primed for a Comeback?

Cardano’s price journey has taken a fresh turn with a decline below the $0.3565 zone. ADA is currently consolidating above $0.3420 and may be gearing up for a potential recovery wave. The recent movement in ADA’s price has been marked by a downward trend, with the price slipping below the $0.3520 support level. Currently, ADA is trading below $0.3500 and the 100-hourly simple moving average.

However, there is a glimmer of hope on the horizon as there was a break above a key bearish trend line with resistance at $0.3460 on the hourly chart of the ADA/USD pair. This positive development indicates that the pair could potentially attempt a recovery wave if it manages to clear the $0.3520 resistance zone.

After reaching the $0.3700 resistance level, Cardano faced difficulty in pushing higher and instead started a downward trajectory. Unlike some other major cryptocurrencies like Bitcoin and Ethereum, ADA saw a drop below the $0.3550 and $0.3500 support levels. The price even dipped below $0.3450 before finding some support at $0.3394 and entering into a phase of consolidation.

During this consolidation phase, there was a minor uptick above the $0.3420 level and a break above the 23.6% Fib retracement level of the downward move from the $0.3705 swing high to the $0.3394 low. Coupled with the break above the bearish trend line resistance at $0.3460, there are signs that Cardano’s price could potentially see some upward movement.

Looking ahead, the immediate obstacles for ADA include resistance levels at $0.3515, $0.3550 (50% Fib retracement level), and $0.3620. Reclaiming these levels could pave the way for a stronger rally towards the $0.3700 region and potentially even higher towards $0.3880.

On the flip side, if ADA fails to break above the $0.350 resistance level, it could see further downside movement. Immediate support levels include $0.3420 and $0.3400, with a potential downside break below $0.3400 opening the doors for a test of $0.3220. However, major support lies at the $0.3100 level where bullish momentum could potentially kick in.

In terms of technical indicators, the MACD for ADA/USD is showing signs of losing momentum in the bearish zone, while the RSI is currently below the 50 level. Major support levels to watch include $0.3400 and $0.3220, with major resistance levels at $0.3500 and $0.3550.

As we navigate Cardano’s price movements in the coming days, it’s important to stay updated on the latest trends and developments in the decentralized finance (DeFi) space. For more intriguing news articles like this, check out DeFi Daily News for a deeper dive into the exciting world of DeFi. Happy trading!

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