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The ongoing recovery of Cardano (ADA) hits resistance at $0.346. Will buyers hold support for a range breakout rally?
With a market cap of $12.19 billion, Cardano struggles to enter the top 10 list of cryptocurrencies. Currently, the ADA token trades at a price of $0.3395 with a 24-hour drop of 1%.
However, the past seven days have resulted in a minor recovery for this layer-1 blockchain project with a new upgrade, accounting for a 5.59% increase. Will this recovery run continue in the week ahead? Let’s find out.
Cardano Recovery Hits Glass Ceiling
In the 4-hour chart, the recovery run in Cardano struggles to surpass a critical resistance level at $0.346. With a double bottom reversal from the $0.313 support level, the bull cycle took a sideways turn near the glass ceiling.
As the 10% recovery run in just two days takes a lateral shift, a consolidation phase is visible with the bottom support at $0.338. With a recently lower price rejection candle, the altcoin avoids closing below this crucial support. However, the 23.60% Fibonacci level at $0.333 is the next crucial support level with the potential to reinstate the bullish trend.
Target Levels Amid Momentum Loss
Overall, the recovery run following the massive pullback phase from $0.399 to $0.313 comes to a halt at $0.346. As the recovery run takes a minor toll, the MACD and DMI indicators switch sides.
The MACD and signal lines give a bearish crossover, and so does the VI line in the DMI indicator. Furthermore, the ADX line registers a downtick. Hence, the momentum indicators reveal a loss with a shift to bearish gears.
Based on the Fibonacci retracement levels, the crucial support beyond the consolidation phase is at the 50% level and the baseline at $0.356 and $0.313, respectively. As for the upcoming trend, the range breakout will determine the next course of action.