Cardano Price Prediction: Cardano (ADA) has been experiencing a corrective phase for the past three weeks, largely influenced by broader market uncertainty, particularly around the Bitcoin ETF launch. From a recent high of $0.677, ADA price has fallen almost 30%, currently trading around $0.497. Despite this bearishness, there is a silver lining: a bullish reversal pattern is forming in the token. This suggests a potential opportunity for buyers to reignite the currency's recovery trend.
$0.49786318 trading now
Over the past seven months, Cardano price movements have largely stagnated, consistently struggling to stay above the $0.7 threshold. This prolonged sideways trend gradually transformed into a bullish 'cup and handle' pattern.
This pattern is often seen as a precursor to an asset price bottoming out, followed by a sustained recovery. Currently, the ADA is in the process of forming a 'handle', a minor correction phase that typically gathers bullish momentum for a breakout above key resistance levels.
With buying pressure building near the $0.46 support level, ADA's price is likely to rise 35%, challenging the neckline resistance at $0.677.
A decisive breakout above this level could be an early indicator of a reversal, possibly sending the price up another 66% to a target of $1.135.
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Is the ADA worth vulnerable to other amendments?
The daily time frame chart for ADA shows a long-tail rejection candle at the $0.46 support level, indicating continued buyer interest during the bearish price. This support level, reinforced by the 50% Fibonacci retracement level and the 100-day exponential moving average (EMA), forms a strong demand zone, setting the stage for a bullish reversal. However, if buyers fail to maintain this key area, it could indicate strong selling pressure, leading to a possible extended decline and invalidating the bullish pattern.
