#Cardano price correction has currently halted at the confluence of the $0.3760 support level and the 38.2% Fibonacci retracement level. The price has been exhibiting sideways movement above this support level, which suggests the formation of a double-bottom pattern. This reversal pattern at a significant support level augments the probability of ADA price persisting in its ongoing recovery rally.
Continued buying pressure is expected to drive the Cardano price above the critical neckline resistance at $0.4000, thus amplifying the underlying bullish momentum. Should this potential trend reversal succeed in breaching the resistance at the 23.8% Fibonacci retracement level of $0.4100, it would likely prompt buyers to push the price higher by 12.75% towards the $0.4600 peak.
On the daily timeframe, Cardano has violated the channel resistance. Nevertheless, the price is currently confined within the boundaries of a range-bound market, with the $0.3760-$0.4000 range capping the price movements.
A convincing breach of the $0.4000 resistance with substantial trading volume may potentially trigger a strong bullish revival for ADA. Currently, ADA is consolidating its gains and trading above both the 100-hourly simple moving average and the falling channel line.
#ADA is currently encountering a crucial resistance at the $0.4080 zone, with a notable resistance forming at the $0.4220 level. A successful breach of this resistance could potentially initiate a substantial uptrend towards the $0.4480 level, with the possibility of facing an intermediate resistance at $0.4600.
However, a failure to close above $0.4080 may prompt immediate support at the $0.3900 level, followed by a significant support zone between $0.3750-$0.3700. Further downside momentum could push the price towards the $0.3500 support level, and any additional losses may result in a test of the $0.3200 level.
KEY LEVELS :
RESISTANCE LEVEL : $0.4080-$0.4220
SUPPORT LEVEL : $0.3860-$0.3750
Disclaimer: Crypto is not regulated and can offer considerable risks. There may be no regulatory remedies available in the event of any losses resulting from price analysis. As a result, before engaging in any transactions involving crypto products, each investor must perform in-depth examination or seek independent advice.
