Cardano, one of the leading cryptocurrency networks, has recently undergone a notable price correction. Despite the sharp downturn, however, several technical indicators are lending signs of a possible rally.

At press time, Cardano (ADA) is trading at $0.3835 with a 24-hour loss of 2.53%. The immediate support for ADA is present at $0.3794, and if this holds, bulls are likely to make some strides towards $0.40 resistance.

Looking at the daily chart for Cardano, a bearish trend appears to be in play. From day’s start, bears have been firmly in control, with ADA/USD pair making a series of lower highs and lows. This price action, commonly referred to as a falling wedge pattern, implies that bearish price momentum is currently prevailing, reflected in the market capitalization of $13,351,418,529 and the circulating supply of 34,814,516,794 ADA coins.

The technical indicators which govern this timeframe also appear to be in favor of the bears. The Moving Average Convergence Divergence (MACD), for example, shows a clear bearish crossover, thanks to the signal line lying beneath the MACD line. Additionally, the Relative Strength Index (RSI) remains below the 50-level at 44, indicating a high degree of selling pressure in the market.

However, a closer look at the 4-hour chart reveals an uptick in bullish sentiment. Despite the earlier losses, buyers have managed to push the price above the earlier support of $0.3800. Furthermore, the green candlestick action suggests that buying momentum is starting to pick up.

This renewed appetite for buyers is further corroborated by the way the RSI has managed to make its way out from the oversold region, currently settled around 39. Consequently, MACD also appears to be sloping upwards, with the signal line firming up for a possible bullish crossover.

All these facts indicate that Cardano price analysis might be in favor of the bulls. If buyers are able to hold the market above the $0.3794 support and make their way past the $0.3900 resistance, ADA may experience a noticeable rally towards $0.4000. Conversely, if sellers manage to break the former's grasp, ADA is projected to drop to $0.3750.



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