Cardano Plunges to $0.24 Support: Is It the Perfect Time to Buy?

Despite prevailing uncertainties in the market, the price of Cardano (ADA) remains resilient above the $0.24 mark, reinforcing this support. This level has been tested multiple times by buyers, but ADA has consistently resisted market pressures over the past nine months.

Furthermore, the Relative Strength Index (RSI) of momentum indicators has highlighted an increase in buying interest for ADA around this crucial support. This suggests that traders are ready to push for further gains. Is it time to invest in ADA?

Analyzing ADA’s price based on the weekly chart, it is evident that the prevailing downtrend has started to turn above the $0.24 level. Over the past nine months, ADA’s price has rebounded from this support at least three times, indicating strong buying activity at this level.

The chart below shows the descending trajectory followed by recent consolidation of ADA’s price. This period of sideways movement typically represents an accumulation phase that often leads to a trend reversal. In other words, it suggests that buyers have successfully established the $0.24 region as a strong support level.

Although the $0.24 level is currently supporting buyers steadfastly, a descending trendline is currently impeding a recovery attempt. In the long term, this trend is still not showing signs of a strong recovery.

These two technical levels, which are currently strongly influencing ADA’s price, indicate the formation of a descending triangle pattern. Until both triangle levels are breached, ADA’s price is likely to continue without significant upward or downward movements.

However, in theory, this pattern is known to indicate trend recoveries. It’s worth noting that the last breakout attempt of the descending pattern was in March, nearly seven months ago. This has given buyers ample time to accumulate ADA and pave the way for recovery.

On the downside, the key level is the $0.24 region. If sellers confirm a breakdown below this support with a weekly candlestick close, ADA’s price could reach the next support around $0.18. In summary, this would represent a 25% drop from current prices.

On the other hand, if buying pressure at the $0.24 region remains resilient, a challenge to the upper limit of the descending triangle could be imminent. This would mean ADA could reach the $0.45 region, which is almost a 100% increase.

A decisive move above this resistance would change the prevailing market narrative, signaling a potential trend reversal. In this scenario, post-breakout momentum could take Cardano’s price to the $0.45 mark, setting the stage for further gains.

Note: This article was originally published on CriptoFacil.

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