Despite recent market losses, Cardano's price is showing resilience, with technical indicators suggesting a potential short-term reversal. The upcoming Chang Hardfork has sparked renewed interest, positioning Cardano for a possible 19% price increase.
Signs of a Rebound
Cardano (ADA) is demonstrating signs of a potential rebound. The price is currently showing a solid bounce from the bottom of a falling channel, suggesting that buyers are returning to the market. This renewed interest is likely driven by the anticipation of the Chang Hardfork, which is expected to enhance Cardano's scalability and decentralization.
Chang Upgrade Nears
The Chang Hardfork is the most anticipated event for Cardano. Currently, 58% of Cardano nodes have migrated to v9.1.0, with only 12% more needed to launch the upgrade. This upgrade aims to make Cardano more scalable and decentralized. The general market rebound, coupled with this news, has likely contributed to the renewed interest in ADA.
Despite the positive outlook, data from IntoTheBlock shows that 76% of all ADA holders are still underwater, with the price having taken a significant hit since the March high. Most holders bought ADA between $1.44 and $2.97, facing up to 88% in losses. However, the upcoming Chang upgrade may offer some reprieve to these holders in the coming weeks.
Technical Analysis
ADA has increased by 3.4% in the last 24 hours, trading around $0.337, but remains down 16.6% over the past 7 days. The current trend for ADA is downward, indicated by the price movement within a descending channel and moving averages positioned above the current price. A recent green candlestick with a long lower wick and increased volume suggests a potential short-term reversal after a fake-out below the channel.
50-day EMA: $0.3988
200-day EMA: $0.4522
Both EMAs are above the current price, indicating a bearish sentiment. However, the price movement within the descending channel suggests a corrective wave back to the 50-day EMA at $0.3988.
Support and Resistance Levels
Support: Around $0.3, as indicated by the lower boundary of the channel and the recent fake-out area.
Immediate Resistance: At $0.4, followed by the 50-day EMA at $0.3856.
Upper Boundary of Descending Channel: Near $0.45, also acting as resistance.
Technical Indicators
RSI: At 36.07, near oversold territory, suggesting a potential price rebound.
Chaikin Money Flow (CMF): At -0.07, indicating some selling pressure but not excessively strong.
If ADA's price rises and breaks above the falling channel, it would signal market strength and turn Cardano bullish. New targets would then be around $0.48, $0.50, and $0.55.
Conclusion
Overall, while the trend for Cardano remains bearish, the recent spike in volume and price action near the lower boundary of the descending channel suggests a potential short-term reversal. The upcoming Chang Hardfork could further catalyze this rebound, offering ADA holders some relief from the prolonged bearish trend.
Notice:
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