Cardano (ADA) experienced a slight uptick of 0.5% over the past 24 hours, trading at approximately $0.60. However, technical indicators suggest potential for further declines amidst bearish momentum.
Current Price of Cardano
Over the past month, Cardano has faced significant volatility. After peaking at $0.84 in late May, it witnessed a nearly 20% decline throughout the month and a 5% drop last week. This downturn occurred amid a broader sell-off of risk assets, largely fueled by escalating tensions in the Middle East.
As of now, the $0.60 level serves as a short-term support, aligning with a trend line established since December 2023. If Cardano fails to maintain this support, a new test at $0.50 or below may be on the horizon, especially as on-chain data indicates rising selling pressure from long-term holders.
Technical Outlook for ADA
Technically, ADA finds itself within an expanding wedge pattern characterized by diverging trend lines, suggesting increasing volatility. The potential for a new test of the lower trend line could see prices dip towards $0.40 if bearish momentum continues.
Notably, the MACD on the weekly chart has displayed a bearish crossover, with the MACD line falling below the signal line, thus intensifying downward pressure. Additionally, the RSI currently at 44 sits below the neutral level of 50, indicating a downward trend.
These indicators collectively signal a bearish outlook in the short term. However, a bullish turnaround remains plausible if ADA surpasses the upper boundary of the recently formed wedge. Such a breakout could trigger a significant rally, potentially exceeding gains of 380% and targeting levels above $1.60 to $2.00.
This price forecast aligns with historical price cycles and optimistic market conditions. Short term resistance levels are pegged at $0.80 and $1.14, which could pave the way for $1.50 or higher. Analysts note a surge in whale accumulation, with millions of ADA recently acquired, and potential catalysts such as the approval of an ADA ETF bolstering bullish sentiment. Nevertheless, overall market weakness and profit-taking could derail bullish trends. Should a breakdown below $0.60 occur, the focus would shift to $0.40.
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