The Cardano coin has been in a correction phase since mid-July, showing a V-top reversal from $0.379. This downfall evaporated the entire gains of the June-July rally and plunged to a low of $0.283. As a result, the altcoin lost a market value of 36.5% before rebounding from the aforementioned low. Is this support enough to restore bullish momentum in ADA?
Cardano Daily Chart: Key Points
- A V-top reversal in ADA price indicates an aggressive selling momentum
- A bullish breakout from the $0.2785 barrier would set the ADA price for a 15% upswing
- The intraday trading volume in the ADA coin is $120.6 Million, indicating a 27% gain.
Source- Tradingview
On August 17th, the ADA price showed a long-tail rejection candle at $0.283 support reflecting the buyers’ accumulation at a discounted price. The resulting reversal pushed the prices 12% higher and currently trading at $0.263.
With sustained buying, the coin price may rise higher and challenge the August 17th high of $0.2785. This candle associated with a huge surge in volume indicates a strong force from sellers to plunge the Cardano coin lower.
However, a breakout above this barrier will break the seller’s weapon and give buyers additional confirmation for recovery. The post-breakout rally could surge the prices by 15%, hitting a downsloping resistance trendline.
Can ADA Price Extend Correction Trend?
If the overall market trend remains bearish, the Cardano coin may face a bearish reversal from the $0.2785 resistance. The supply pressure could trigger a sideways trend above the $0.283 support. Under a pessimistic approach, a breakdown below the $x and $x barrier would trigger a massive correction in ADA price.
- Bollinger Band: The downtick in the lower band on the Bollinger band indicator projects the bearish momentum is still aggressive.
- Relative Strength Index: The daily RSI slope must break the 40% mark to reflect suitable bullish momentum for a rally.