Cardano (ADA), the native token of the blockchain platform, is looking to bounce back after a four-day price decline. Analysts believe ADA has the potential to surge to $0.62 if it can overcome a crucial resistance level at $0.49.
This potential upswing comes after ADA’s price dipped to a critical support level of $0.433, aligning with a broader market correction. The broader market downturn was triggered by the release of higher-than-expected May employment data in the US, reporting a strong 272,000 new jobs. This data point raised concerns about potential interest rate hikes, leading investors to pull back from riskier assets like cryptocurrency.
However, there are signs of hope for Cardano. Despite the recent slump, ADA is currently experiencing a slight rise of 0.54%, reaching $0.439. This price increase indicates that ADA is finding support at a key level. Additionally, data shows that a significant amount of ADA, roughly 3.47 billion tokens held by over 350,000 addresses, is concentrated within the $0.371 to $0.431 price range. This concentration highlights the importance of this zone as a strong support area.
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Furthermore, the weekly SMA 50 (Simple Moving Average) is currently positioned at $0.433, coinciding with the critical support level. The SMA 50 is a technical indicator often used to identify potential trend reversals. If ADA can maintain its position above this level, bolstered by the support zone, it could signal the start of a bullish trend.
Traders and analysts are keeping a close eye on ADA’s price movements to gauge its future direction. A successful breach of the $0.49 resistance level could trigger a significant price increase, potentially reaching $0.62. However, if ADA fails to hold above the support zone and the SMA 50, it might experience further decline.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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