Cardano price struggles for a bullish comeback while analysts picture a potential rally to $2 if ADA price exceeds $1.14.
As the crypto market remains highly volatile, with Bitcoin fluctuating near the $88,000 mark, Cardano is witnessing a quick pullback. The ADA price dropped by 7% last night and continues a bearish trend with an intraday pullback of 4.08%.
Currently, Cardano trades at a market price of $0.8694 and warns of a potential return to $0.73. Will a lower price rejection candle signal a reversal for Cardano? Let’s find out.
Cardano Price Struggles at $0.86
On the daily price chart, Cardano is fluctuating sharply between the 50% Fibonacci level at $0.62 and the $1.20 supply zone. After a bullish engulfing candle formed over the weekend, with a 72% surge, Cardano has since shifted to a lateral movement.
The bullish recovery failed to overcome the supply pressure at the overhead zone, resulting in sharp fluctuations near the 78.6% Fibonacci level, which is at $0.9216.
Currently, Cardano has reached this critical level and formed a second consecutive bearish candle. As Cardano navigates this volatile path, the MACD and signal lines indicate a potential bearish crossover.
The average lines have entered positive territory, but the declining histograms suggest a trend reversal is possible. Additionally, the daily RSI line is nearing the halfway mark, reflecting a slight decline in bullish momentum. Hence, the technical indicators point to the possibility of a pullback.
Will Cardano Price Bounce Back To $2?
According to Fibonacci levels, the current short-term volatility suggests a potential pullback to the 61.8% Fibonacci level at $0.735. However, similar to the lower price rejection on Tuesday, the ADA price trend is likely to regain bullish momentum as the broader market stabilizes.
Furthermore, Ali Martinez, a crypto analyst, highlights the potential for a bull run in Cardano to the $2 milestone. In the analyst’s latest X post, he notes that Cardano’s price trend is forming a right-angled descending broadening wedge pattern.
This pattern is typically considered bullish and often leads to a breakout rally. Currently, the overhead resistance of the pattern stands at the $1.14 horizontal level. According to the analyst, a bullish breakout above this resistance could trigger a high-momentum rally in ADA toward the $2 mark.
This is how #Cardano $ADA can enter a bull rally to $2! pic.twitter.com/fMO3u3lVdc
— Ali (@ali_charts) March 7, 2025