The Cardano (ADA) price rally has been a roller-coaster ride, with bulls and bears battling for control. As the market evolves, the course of ADA becomes crucial in determining whether a trend reversal is in sight. Let’s take a closer look at the recent price action and analyze potential bullish and bearish scenarios for ADA.
Bulls Regain Confidence:
Cardano’s recent price surge saw it breaking through key resistance levels, reaching as high as $0.373. However, the price struggled to maintain stability above the EMA200 and experienced a correction back to $0.303. Despite this setback, the bulls regained confidence and pushed ADA above the EMA50, a positive sign. To initiate a bullish trend reversal, ADA needs to break the resistance at $0.382.
Bullish Price Targets:
If ADA can break through the $0.321 mark, a new attack towards $0.354 can be expected. Breaking the make-or-break zone between $0.373 and $0.384 would be a crucial win for the bulls. Subsequently breaching the May 29 interim high at $0.399 could lead to a fresh run towards the April 19 stall line at $0.436. Further upward momentum may take ADA to the purple zone between $0.503 and $0.524, and even higher at $0.556 and $0.590.
Bears Lurking:
Despite the recent price surge, a sustainable change in market structure remains uncertain. Bears could push ADA below the EMA50, leading to a retest of the support zone between $0.270 and $0.262. Further weakness could extend the correction towards the blue support area between $0.247 and $0.242, or even down to the yearly low at $0.231.
Indicators Analysis:
The RSI and MACD indicators suggest mixed signals. RSI fell back to 54 from a high of 72, while MACD activated a new long signal. In the weekly chart, RSI is at 44 but trending slightly north. Fresh signals above the thresholds could impact the price action.
In conclusion, Cardano’s price trajectory is crucial in determining the trend reversal potential. Bulls must break key resistance levels to maintain momentum, while bears may exploit market weaknesses. The market indicators also play a significant role in shaping ADA’s future moves. Traders and investors should closely monitor the key levels mentioned to gauge ADA’s next direction.
