Cardano Struggles To Support Its Bullish Session! Is ADA Price Chasing Bottom?


Cardano’s price has been trading in a promising zone due to IOHK’s developmental updates and easing FTX contagion with positive CPI data. However, ADA’s price experiences low strength after continuous bullish trading sessions in the last few days. Now, the massive pump in the ADA price chart seems to become range-bound as it struggles to hold its price above the resistance level due to the wake-up call from bears.  

ADA Price Reaches A Crucial Point

The exponential upward rally for Cardano has been stuck in a crucial zone as it fails to break through its strong resistance level. Despite an increase of 55% in TVL (total value locked), ADA price has registered multiple lows and highs and formed a descending channel in the weekly price chart. 

A prominent crypto analyst, Blue Profit, predicts a downtrend for ADA price in the upcoming days as ADA wipes investors’ bullish hopes by consolidating near its resistance zone at $0.34-$0.37. The 2-week price chart for ADA shows a falling wedge pattern, and the analyst expects a bearish reversal if ADA fails to hold this resistance zone, resulting in slumping the token hard to the bottom levels of $0.15. 

Cardano In A Do Or Die Situation

In the last two weeks, Cardano’s price has rallied over 50% and is currently knocking the $0.4 level to extend its impressive bullish rally ahead. However, a rejection near $0.402 has brought fear among investors as the token tends to end its bullish rally and head toward its previous bottom levels made during FTX’s crash. 

According to Coinmarketcap, ADA price trades at $0.35 with an uptrend of 1.34% in the last 24 hours. Looking at the price chart, ADA creates a flip situation near its range-bound zone, bringing FUD sentiments among altcoin investors. Though ADA attempted a recovery rally near $0.4, it failed multiple times as bears got the driving seat. The RSI-14 moves near the 80-level, which is an overbought region that can lead to a downward correction to 23.6% Fib level by this week. 

However, Cardano may become bullish if ADA breaks above $0.402 as it can follow a clear upward trajectory to its EMA-200 at $0.43. Moreover, Bitcoin’s bullish trading sessions will significantly impact the altcoin market and can eliminate any bearish sentiment.

However, a downtrend below $0.32 may solidify bears’ domination and bring a choppy situation for traders as ADA can plunge to its 62% Fib retracement at $0.288 with an intense selloff. 

Source link

Related Articles