[Will Cardano hit $1 as trend line breaks? 】
On the daily chart, Cardano continues to show a downward trend and has been hit hard over the past few months. The ADA token has fallen 54% since April, falling from a yearly high of $0.81 to currently $0.37, facing the psychological barrier of $1.
The lower highs of the bearish trend formed a resistance trend line. In addition to the $0.34 support, a descending triangle is also visible, trapping Cardano. ADA is up 1.65% today and is trading at $0.37.
Cardano is the tenth largest cryptocurrency with a market capitalization of $13.34 billion. However, about $2.5 million in long positions were liquidated on Thursday and Friday, according to Coinglass data.
Lower price rejection on the intraday candlestick suggests a possible bullish recovery over the weekend. Additionally, support levels historically provide a cushion for rebounds. Bullish divergence in the daily RSI line supports the possibility of a bullish cycle. However, the bearish trend in the MACD and signal lines continues, with an increasing negative histogram.
Cardano’s recovery rally is expected to accelerate next week as bullish divergence comes into play. Therefore, the chances of a rebound above the upper trendline increase. Using Fibonacci retracement analysis to correct the move, the 50% Fibonacci level at $0.56 is a potential breakout rally target. Above this level, a bullish reversal could complete a round-bottom reversal with a neckline at the $0.775 high.
Cardano is poised for a bull run as the market recovers, but the upward trend may not reach $1 this quarter. Based on the same Fibonacci retracement, the 1.618 Fibonacci level at $1.041 is a potential target this year.
