Cardano, the largest cryptocurrency after Bitcoin and Ethereum and the native token of Cardano blockchain recently showed a significant reversal from its local support trendline. After a month-long dip, the ADA price currently trades at $0.358, below its immediate resistance of $0.373. But, for a better confirmation of a price recovery rally, the ADA price needs to break out from the channel resistance of $0.373 to achieve a 40% rally and hit the $0.5 mark. For the last four months, Cardano has traded within the boundary of an ascending parallel channel pattern, offering potential pullback accumulations at the lower trendline. Interestingly, the support of the channel is aligned with the local support line of $0.35, and an intraday rejection candle at this level is a positive sign for the bulls.

Upon a successful push above the resistance zone, the bulls of the Cardano coin can expect a 40% push to the overhead trendline. But, to start the Rally, the ADA needs to reclaim the 100-day Exponential Moving Average moving near the $0.376 resistance line. As per the technical indicators like Moving Average Convergence Divergence, the bearish sentiment is still intact, so a breakout from the resistance will be a great sign for the buyers. However, in a worst-case scenario, a breakdown from the support should be seen as a signal of further selling. For now, the price actions of ADA at the current levels of the channel support should be monitored for better Bullish Reversal Accumulations.



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