Cardano (ADA) has been caught in a downward spiral, losing over 50% of its value since April’s peak. However, technical indicators are suggesting a potential bullish reversal for the beleaguered cryptocurrency.
The ADA token is currently trading around $0.37, a far cry from its $0.81 high. A descending triangle pattern on the daily chart, coupled with a resistance trendline, has kept Cardano trapped in a bearish cycle. Despite a recent 13% drop, a glimmer of hope has emerged with a lower price rejection and a bullish divergence in the RSI indicator.
While the MACD remains bearish, the potential for a rebound is undeniable. If Cardano manages to break through the overhead resistance, it could initiate a rally towards the 50% Fibonacci retracement level of $0.56. A successful breakout from this level could even pave the way for a rounding bottom reversal, with a potential target of $1.041 by the end of the year.
However, it’s important to note that reaching the $1 mark in Q3 2024 seems unlikely. The cryptocurrency market remains volatile, and external factors could impact Cardano’s trajectory.
Also Read: Market Meltdown: $1B+ Erased as Crypto Collapses, Ethereum Down 25%
Investors are closely watching Cardano’s movements as it attempts to break free from the bearish grip. A successful breakout could signal a broader market recovery, but caution is advised due to the ongoing uncertainties.
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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