- Cardano price has approached a potential turning point following a month of underperformance.
- ADA recorded a monthly low, and a technical indicator is signaling a local bottom.
- However, indecision continues to mount for Cardano for the time being.
Cardano price appears to be forming a local bottom, although indecision continues to consuming ADA. The public blockchain crypto is struggling to hold onto critical support, although a technical indicator suggests a trend reversal may be in store.
Cardano price flooded with indecision
Cardano price has recorded its monthly low at $1.15, failing to galvanize investors’ enthusiasm. ADA has broken below a rising wedge pattern on the daily chart, which resulted in nearly a steep decline.
The rising wedge pattern projected a 14% drop for Cardano price. Since ADA bears have been taking control, the asset fell further by a total of 17% to $1.15.
Cardano price appears to be searching for a bottom, supported by the diagonal declining trend line that emerged on June 5. ADA seems to be aiming for a trend reversal, as the Momentum Reversal Indicator (MRI) flashed two consecutive buy signals.
To reverse the period of underperformance, Cardano price must close above the aforementioned support trend line for a bullish forecast to emerge. Should ADA witness accelerated interest, it could realize an 11% gain, reaching the 61.8% Fibonacci extension level at $1.30.
ADA/USDT daily chart
Should ADA buying pressure see an increase, Cardano price could aim at the 50-day Simple Moving Average (SMA) at $1.44, coinciding with the resistance line given by the MRI. However, this bullish target would only be in effect if it is able to overcome the 78.6% Fibonacci extension level at $1.38.
Currently, Cardano has printed a doji daily candlestick, indicating general equilibrium between buyers and sellers.
Cardano price will discover meaningful support at the 200-day SMA at $1.12. If ADA continues to lose steam, it could slice below the declining line of defense, falling further to retest the 23.6% Fibonacci extension level at $1.11.
A sharp spike in selling pressure would force Cardano into the demand zone, with a maximum bottom target at $1 for the time being.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.