Crypto price prediction: Cardano (ADA) recent recovery indicates growing buying pressure

 ADA crypto price prediction:

ADA crypto chart analysis

Cardano (ADA) has been experiencing a downward trend over the past week. Its current price stands at $0.7332, with a significant drop of 23.09% in the past seven days. The cryptocurrency has also seen a slight decline of 0.82% in the last 24 hours. Despite this drop, Cardano maintains a strong market presence with a total market capitalization of over $26.3 billion and a circulating supply of 36 billion ADA.

Last week, ADA lost over 36% of its value and continued to fall by another 7% on Monday. However, on Tuesday, the price showed signs of recovery after touching a key support level of $0.64. This support level plays an important role in the price movement of Cardano and could influence future trends. A rebound from this level may indicate a potential price increase, but further confirmation is needed.

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Fibonacci retracement levels

The $0.64 price level is crucial for several reasons. First, it aligns with a previously broken descending trendline, which traders often use to identify price reversals. Additionally, this level coincides with the 61.8% Fibonacci retracement level at $0.67, a common technical indicator used to measure potential price corrections. Furthermore, the $0.64 to $0.57 range is considered a bullish order block area, meaning that large traders had previously placed buy orders in this zone.

If Cardano holds above the $0.64 level, it may begin a recovery phase. The next major resistance level for ADA is at $0.98, which could serve as the next target if the price moves upward. However, for a strong recovery to occur, buying momentum needs to increase, and key technical indicators must confirm the bullish outlook.

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The Relative Strength Index (RSI) is currently at 48.34. Still it is below the neutral level of 50, signaling bearish momentum. For ADA to see a strong recovery, the RSI needs to rise above 50, which would indicate growing buying pressure. If this happens, the price could gain enough strength to challenge higher resistance levels.

Despite some positive signals, there is still a risk of further decline. If ADA fails to hold above $0.57, the bullish outlook would be invalidated. In this scenario, the price could drop further and test the next support level at $0.50.