Cardano struggles to restart its bullish trend amid increasing overhead supply. Can today’s growth lead to a rise toward the resistance trendline?
Currently, Cardano trades at a 60% discount from its yearly high of $0.81, with its market cap steadily declining. After six months of bearish and Doji monthly candles, ADA has lost 48% of its value this year.
The ongoing correction creates a bearish channel on the daily chart, testing the $0.30 support level. Amid heightened volatility, the altcoin sits at the support trendline, awaiting new bullish momentum.
Recovery Delays Signal Potential Drop Below $0.30
In the recent downturn, which aligns with the broader market decline, Cardano hit a low of $0.277. However, underlying demand has pushed the closing price above the $0.30 support.
cardano price chart (source: Trading view)
Price Movement Overview
Residual bullish forces lifted ADA by i4.81% today, marking a total increase of 12% in the last 24 hours. This surge ended a ten-day streak of bearish movement and suggests a potential reversal.
The volume profile during this decline reveals significant trading activity between $0.35 and $0.37. Additionally, high-volume bars around $0.45 and $0.47 indicate the bearish range’s fair value.
Read Also: Why ADA Holder Might See a Bullish Reversal Soon
Currently priced at $0.32, Cardano is approaching the $0.35 high-volume area. However, the bearish trend in the MACD and signal lines suggests a profit-taking phase may be underway.
Is $0.50 Within Reach for Cardano?
A lower price rejection near $0.30 boosts the likelihood of a bullish cycle developing within the downward trend. Moreover, rising rumors about potential emergency rate cuts could further drive ADA upward.
According to pivot point analysis, ADA finds initial support at $0.319 and aims to reclaim $0.387. Beyond this point, resistance levels are identified at $0.45 and $0.52.
Additionally, the upcoming Chang hard fork may significantly influence Cardano’s price trend by enhancing community involvement in on-chain governance. Historically, ADA’s price surged over 130% leading up to the update that introduced smart contracts.
However, ADA often exhibits bearish behavior after major upgrades. Given the potential negative impact of the hard fork, the next pivot support levels for ADA are at $0.24 and $0.18, which could present buying opportunities.
