The ongoing recovery of Cardano (ADA) hits resistance at $0.346. Will buyers hold support for a range breakout rally?
With a market cap of $12.19 billion, Cardano struggles to enter the top 10 list of cryptocurrencies. Currently, the ADA token trades at a price of $0.3395 with a 24-hour drop of 1%.
However, the past seven days have resulted in a minor recovery for this layer-1 blockchain project with a new upgrade, accounting for a 5.59% increase. Will this recovery run continue in the week ahead? Let’s find out.
Cardano Recovery Hits Glass Ceiling
In the 4-hour chart, the recovery run in Cardano struggles to surpass a critical resistance level at $0.346. With a double bottom reversal from the $0.313 support level, the bull cycle took a sideways turn near the glass ceiling.
As the 10% recovery run in just two days takes a lateral shift, a consolidation phase is visible with the bottom support at $0.338. With a recently lower price rejection candle, the altcoin avoids closing below this crucial support. However, the 23.60% Fibonacci level at $0.333 is the next crucial support level with the potential to reinstate the bullish trend.
Target Levels Amid Momentum Loss
Overall, the recovery run following the massive pullback phase from $0.399 to $0.313 comes to a halt at $0.346. As the recovery run takes a minor toll, the MACD and DMI indicators switch sides.
The MACD and signal lines give a bearish crossover, and so does the VI line in the DMI indicator. Furthermore, the ADX line registers a downtick. Hence, the momentum indicators reveal a loss with a shift to bearish gears.
Based on the Fibonacci retracement levels, the crucial support beyond the consolidation phase is at the 50% level and the baseline at $0.356 and $0.313, respectively. As for the upcoming trend, the range breakout will determine the next course of action.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
