- With the ongoing pullback testing the bullish dominance at $0.50, the ADA price is at a pivotal juncture.
- The bullish efforts are teasing a double bottom reversal in Cardano from the $0.50 psychological mark.
- If the bullish reversal breaks the $0.70 mark, Cardano can reclaim the psychological mark of $1.
With the consolidation phase of Cardano finding an increase in bearish influence, the ADA price volatility increases. The recent downfall and the ongoing brawl at the psychological mark of $0.50 will be crucial for the upcoming trend.
Further, the strong buying pressure managing to absorb the supply increase at $.50 supports the double bottom reversal possibility. Therefore, despite the ongoing pullback, our Cardano price prediction keeps a bullish viewpoint in 2024.
ADA Price Teases Bullish Reversal This Week
Source – Tradingview
In the daily chart, the ADA price shows a slow consolidated decline from the $0.68 peak formation. Further, the downfall accounts for a 25% drop in Cardano’s market cap and tests the $0.50 mark.
The psychological mark of $0.50 aligns with the 38.20% Fibonacci level and warns of a fast-paced fall if the bears fracture the zone. However, the bulls are preparing a comeback with a double bottom reversal.
The recent drop to the support zone came with a 4.92% drop last night, and the ADA price forms an intraday Doji candle today. This projects a potential morning star pattern to kickstart the double bottom reversal.
However, a drop below the support zone can result in a price fall to the 50% Fibonacci level at $0.454. On the upside, the bullish reversal can breach the $0.70 to test the psychological mark of $1.
Technical indicators:
EMA: The downfall breaks the 50-day EMA and warns of a fall to the 200-day EMA at the 61.80% Fibonacci level.
RSI: The daily RSI line shows a bullish divergence in the last two dips at the $0.50 mark. Further, the RSI line trades slightly above the oversold zone and prepares for a bounce back.
