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CARDANO PRICE ANALYSIS: WILL ADA BOUNCE BACK ABOVE $0.50?
#Cardano #ADA #ADAprediciton #ADArecovery
Trading at a 60% discount from its 52-week high of $0.81, Cardano's market cap continues to decline. Over the past six months, ADA has experienced a consistent downtrend, losing 48% of its value year-to-date.
Bearish Trend and Support Levels
Cardano's ongoing correction has formed a bearish channel on the one-day chart, testing the $0.30 support level. Despite increased volatility, ADA is holding at this support trendline, anticipating a new bullish cycle.
Recent Market Activity
During the recent market downturn, Cardano hit a low of $0.277. However, demand pushed the closing price back above the $0.30 support. ADA saw a 4.81% increase today, leading to a 12% surge within 24 hours. This rise broke a ten-day streak of bearish candles, hinting at a potential reversal.
Trading Volume and Price Resistance
The volume profile shows high trading activity between $0.35 and $0.37, with another significant volume range between $0.45 and $0.47. Currently, Cardano is trading at $0.32 and approaching the higher volume range of $0.35. However, the bearish trend in the MACD and signal lines indicates a possible profit-taking phase.
Potential for a Bullish Cycle
A lower price rejection near $0.30 suggests a possible bullish cycle within the current range. Additionally, rumors of an emergency rate cut could boost ADA's price. According to pivot point standards, ADA finds support at $0.319 and aims to reclaim $0.387. Beyond this, resistance levels are at $0.45 and $0.52.
Impact of the Upcoming Hard Fork
The upcoming Chang hard fork could significantly impact Cardano’s price trend, introducing community participation in on-chain governance. Historically, ADA's price surged by over 130% leading up to the smart contracts update. However, ADA has also shown bearish tendencies after major upgrades. If the hard fork leads to a downtrend, the next pivot support levels are at $0.24 and $0.18, which could be buy-the-dip opportunities.
