In response to daily retreat barrier at$0.455, the price of Cardano responded, indicating a possible short-term decline.
Between $0.363 and $0.349, there is a support region where ADA may be acquired by side investors.
If the daily candlestick closes below $0.317, the bullish thesis would be rendered invalid.
Near the daily level of $0.455, the price of Cardano (ADA) is facing resistance, suggesting a temporary decline. For those who are sitting on their hands, there's an opportunity to buy ADA between $0.363 and $0.349 with the expectation of a rise in the near future.
After retesting a crucial support level, the price of Cardano might go higher.
In the three days after July 12, the price of Cardano surged 7% after breaking above the declining trendline. The 8.6 percent drop followed its rejection at the daily resistance level of $0.445. It has tried and failed on many occasions to overcome this obstacle. It is still retracing as of this writing and is trading 3% lower at $0.393 on Thursday.
Between $0.363 and $0.349, there is a daily bullish order block that investors may use to their advantage when purchasing. Institutional traders and other market players have historically placed purchase orders in a bullish order block area. A crucial reversal zone, this order block region coincides with the trendline breakout point at $0.357.
With a successful rebound from the $0.357 level, Cardano's price has the potential to surge 24% and retest its daily barrier at $0.445.
Both the Awesome Oscillator (AO) and the Relative Strength Index (RSI) have momentarily fallen below 50, the neutral level, on the daily chart. For the momentum indicators to confirm a bull run, they need to stay above their respective moving averages. The recovery rally would get a boost from such a scenario.
With a strong bullish outlook, ADA might continue its 26% recovery to retest the $0.564 50% price retracement level (shown as the line connecting the high of $0.810 on March 14 and the low of $0.318 on July 5). This could happen if the cryptocurrency closes above the $0.445 level.
Nearly 161,130 addresses amassed 1.91 billion ADA tokens at an average price of $0.385 according to IntoTheBlock's In/Out of the Money Around Price (IOMAP). A crucial support zone, these addresses purchased Cardano coins between $0.379 and $0.391.
Curiously, the IOMAP results align with the $0.379 to $0.391 zone highlighted in technical analysis, making this zone an important place to monitor for a possible reversal.
The bullish thesis would be rendered useless if Cardano's price were to conclude each day's candlestick below $0.317, even if on-chain measurements and technical analysis indicate a favorable outlook. A 10% drop in ADA price, bringing it back down to its daily low of $0.283 from November 1, 2023, is possible in light of this news.