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In a declining trend, Cardano faces difficulty restarting a bull cycle as the overhead supply grows. Will the intraday growth propel a new ride to the resistance trendline?
Trading at a 60% discount from its 52-week high of $0.81, Cardano’s market cap is on a steady decline. After making a streak of bearish and Doji monthly candles for six months straight, ADA has lost 48% of its value on a year-to-date scale.
The ongoing correction spree in Cardano forms a bearish channel in the one-day chart and tests the $0.30 support. Amid the suddenly increased volatility, the altcoin stands at the support trendline, waiting for a new bull cycle momentum.
Cardano Delay in Recovery Warns Freefall under $0.30
In the recent negative cycle, coinciding with the broader market fall, Cardano registers a low of $0.277. However, the underlying demand helps push the closing price well above the $0.30 support.
The residual bullish forces pumped the ADA price up by 4.81% today, accounting for a total of 12% surge within the last 24 hours. Furthermore, the sudden surge ended a streak of ten bearish days with a bullish candle and indicated a hope of reversal.
As per the volume profile of the ongoing downfall, the trading activity between $0.35 and $0.37 shows moderately high volume. Further, the next set of high-volume bars in the $0.45 and $0.47 range reflect the fair value of the bearish range.
Currently, Cardano trades at $0.32 and readily approaches the $0.35 higher volume range. However, the bearish trend in the MACD and signal lines warns of a profit-booking phase.
Will Cardano Reach $0.50?
A lower price rejection near $0.30 increases the chances of a bullish cycle within the falling range. Additionally, ADA could surge due to rising rumors and hype around potential talks for an emergency rate cut.
According to pivot point standards, ADA finds support at the first support level (S1) at $0.319 and aims to reclaim $0.387. Beyond this, the indicator reveals the next resistance levels at $0.45 and $0.52.
Furthermore, the upcoming Chang hard fork could significantly impact Cardano’s price trend as it introduces community participation in on-chain governance. Historically, the price of ADA rallied by over 130% leading up to the update that brought smart contracts to Cardano.
However, ADA also has a bearish tendency after major upgrades. Considering the likely bearish influence of the hard fork, the next levels of pivot support for ADA are at $0.24 and $0.18, which could become areas to buy the dip.