Amid the declining Bitcoin and Ethereum prices, Cardano witnessed a massive, intense pullback over the past four days. This accounted for a downfall of 25% to re-test the $0.70.
Cardano is preparing for a post re-test reversal, as it fluctuates near the 200 EMA line. Will this recovery propel Cardano back above the $1 milestone? Let’s find out.
Cardano Price Analysis
Cardano is currently trading at a market price of $0.748 with an intraday recovery of 3.74%. This comes after a bearish engulfing candle formed on Sunday with a pullback of 10%.
However, the pullback comes as a potential retest of the broken falling wedge pattern. Along with the broken resistance line, the 200-day EMA line provides a cushion to the falling ADA prices.
As Cardano maintains dominance above the broken resistance trendline, the possibility of a bullish comeback is significant. However, the prevailing downfall has led to a negative crossover in the MACD and signal lines.
Furthermore, the 50- and 100-day EMA lines are merged and ward off a potential negative crossover. Based on the possibility of a post-retest reversal, the uptrend will likely challenge the trend-based Fibonacci level at $0.876.
A breakout rally will likely test the 50% Fibonacci level at $1.27. On the flip side, the crucial support for ADA remains at $0.626 followed by the $0.50 psychological mark.
Analyst Suggests Key Support at $0.66
Ali Martinez, a crypto analyst, highlights the possibility of a bullish reversal in ADA prices. In the daily ADA price chart, Ali Martinez highlights a key support zone between $0.80 and $0.66.
As long as Cardano sustains dominance above this zone, the bullish comeback in ADA prices will likely scale a new high.
Credit: Source link