• Thu. Jul 25th, 2024

Cardano (ADA) Flashes Recovery Signs, but Bulls Have Doubts

Cardano

 

 


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  • Cardano aims to recover its latest losses with a massive bounce.
  • However, the recovery path might not be smooth with the emergence of many roadblocks.
  • The altcoin has to surge past $2.50 to resume its uptrend.

Cardano’s price seems ready to launch recovery after registering a local bottom near $1.90, its lowest value since 18 August. A vital technical indicator shows that Cardano might reverse its underperformance in the coming sessions.

ADA Struggles with Substantial Headwind

ADA prepares to reverse the inactive performance as MRI (Momentum Reversal Indicator) made a bottom gesture on 21 September on the twelve-hour price chart. Also, the indicator showcased a bottom sign on 23 September, further indicating ADA will bounce in the coming sessions.

Meanwhile, multiple obstacles confront ADA’s upside actions. Bulls have conquered many resistance levels to trigger massive gains. The altcoin will likely face its initial challenge at the 20 12hr Simple Moving Average at $2.30. However, IOMAP stats indicate that this is a slight hurdle for Cardano.

The following hurdle for the altcoin stands at $2.36. The 38.2% FIB retracement zone and the 100 12hr Simple Moving Average meet at this obstacle. Another massive challenge will appear at $2.44, as suggested by the MRI’s resistance line.


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The IOMAP indicates that the level mentioned above displays massive resistance. Remember, 72,340 addressed bought 1.55 billion ADA tokens at $2.44 around the area. For now, ADA has to explore this territory for enough momentum to hit the diagonal resistance extending from its ATH on 2 September.

Meanwhile, for ADA to break its prevailing downtrend, it has to trade past $2.50. The diagonal trend-line and the 50% FIB retracement meet at this level. However, bulls should consider this area a massive resistance for ADA. That is according to the IOMAP data.

The alt might encounter more resistance around the 50 12hr Simple Moving Average at $2.56 if the coin succeeds to break past the diagonal trend-line. Despite the optimism, ADA hovers on thin ice. That is because breaking beneath a crucial support level might translate to a massive crash.

ADA would secure the nearest support near the 23.6% FIB retracement at $2.19. If sell orders magnify at this level, the alt might drop towards the diagonal support at $1.95.

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Kevin Moore - E-Crypto News Editor

Kevin Moore - E-Crypto News Editor

Kevin Moore is the main author and editor for E-Crypto News.