The post ADA Price Reversal Eyes $0.70 Breakout With Hopes To Cross $1 appeared first on Coinpedia Fintech News
With the consolidation phase of Cardano finding an increase in bearish influence, the ADA price volatility increases. The recent downfall and the ongoing brawl at the psychological mark of $0.50 will be crucial for the upcoming trend.
Further, the strong buying pressure managing to absorb the supply increase at $.50 supports the double bottom reversal possibility. Therefore, despite the ongoing pullback, our Cardano price prediction keeps a bullish viewpoint in 2024.
ADA Price Teases Bullish Reversal This Week
Source – Tradingview
In the daily chart, the ADA price shows a slow consolidated decline from the $0.68 peak formation. Further, the downfall accounts for a 25% drop in Cardano’s market cap and tests the $0.50 mark.
The psychological mark of $0.50 aligns with the 38.20% Fibonacci level and warns of a fast-paced fall if the bears fracture the zone. However, the bulls are preparing a comeback with a double bottom reversal.
The recent drop to the support zone came with a 4.92% drop last night, and the ADA price forms an intraday Doji candle today. This projects a potential morning star pattern to kickstart the double bottom reversal.
However, a drop below the support zone can result in a price fall to the 50% Fibonacci level at $0.454. On the upside, the bullish reversal can breach the $0.70 to test the psychological mark of $1.
Technical indicators:
EMA: The downfall breaks the 50-day EMA and warns of a fall to the 200-day EMA at the 61.80% Fibonacci level.
RSI: The daily RSI line shows a bullish divergence in the last two dips at the $0.50 mark. Further, the RSI line trades slightly above the oversold zone and prepares for a bounce back.
