Cardano Price Bounces Back, Tests Moving Average Resistance

Cardano's (ADA) price rebounds after falling below moving averages. The altcoin remains in an uptrend despite the recent downtrend, but its momentum has stalled at $0.80. Bulls are currently supporting prices above $0.58, with resistance at the 21-day SMA ($0.65). A bullish breakout could push ADA towards $0.80 and $0.92, while a failure to break resistance could lead to a rangebound market between the moving averages. Technical indicators suggest ADA's price is fluctuating between the 50-day SMA and the current price, with potential for a breakout or breakdown within the range.

Cardano Price Rebounds, Faces Resistance at Moving Averages

March 29, 2024

Cardano (ADA), the eighth-largest cryptocurrency by market capitalization, has exhibited a recovery after slipping below its moving averages. However, long-term projections for the asset indicate a bearish outlook amidst an ongoing downtrend.

Market Dynamics

Cardano's uptrend, which emerged from a previous downtrend, has stalled at a high of $0.80. Subsequent rejections at this level have led to a decline in the altcoin's value. Nevertheless, bulls have intervened, purchasing declines from a low of $0.58.

Today, Cardano has rallied to a high of $0.65 but remains trapped between the moving average lines. If the price overcomes the 21-day SMA, the cryptocurrency could potentially retest its previous high of $0.80. This positive momentum could further extend to $0.92.

Conversely, a failure of the bullish scenario would confine Cardano within a limited range between the moving average lines.

Technical Analysis

Cardano's price has crossed above the 50-day SMA. Trading within the moving average lines denotes potential price volatility. Breakouts and declines are possible as the asset navigates a constrained range. The presence of doji candlesticks further suggests a stalling price action.

Key Resistance and Support Levels

• Resistance zones: $0.80, $0.85, $0.90
• Support zones: $0.50, $0.45, $0.40

Future Price Predictions

Cardano's uptrend has encountered resistance, halting its momentum. The cryptocurrency's current price range extends from $0.58 to $0.80. The resumption of the uptrend hinges on a breakout above the $0.80 resistance level.

Conclusion

While Cardano has shown signs of recovery, its long-term outlook remains bearish. The asset faces resistance at its moving averages, and a sustained breakout is necessary to regain previous highs. Failure to do so could result in continued trading within a limited range.