Cardano's Price Movement Suggests Potential Breakthrough

According to Cointelegraph, Cardano (ADA) has shown signs of rebounding from a strong support level, increasing the likelihood of surpassing the $0.94 resistance. Recent market behavior has seen strong rallies followed by sharp declines, a pattern observed across several altcoins, including ADA. Typically, such pullbacks serve to eliminate weaker positions before the market resumes its upward trend. On Monday, ADA managed to break above the $0.86 resistance level, although the bulls struggled to maintain these higher levels. By Wednesday, the price had sharply declined, falling below the breakout level of $0.86. Thursday's market activity saw the bears pushing the price towards the 20-day simple moving average (SMA) at $0.73. However, the candlestick's long tail indicated robust buying interest at lower levels. The bulls are now expected to challenge the overhead resistance at $0.94. Successfully crossing this threshold could propel the ADA/USDT pair to $1.02 and potentially to $1.17. Conversely, if the price declines and breaches the 20-day SMA, it may suggest that the breakout above $0.86 was a bull trap, potentially leading the pair to drop to the 50-day SMA at $0.66. On the 4-hour chart, the moving averages are nearing a bearish crossover, signaling a possible resurgence by the bears. Recovery attempts might encounter selling pressure at the 20-SMA. Should the price fall from the 20-SMA, the pair could descend to $0.75 and further to $0.70. The extent of the decline could prolong the onset of the next upward trend. For buyers to regain control, they must drive the price above the 20-SMA. Achieving this could see the pair rise to $0.90 and subsequently to $0.94. It is important to note that this article does not offer investment advice or recommendations. All investment and trading activities carry risks, and readers are encouraged to conduct their own research before making any decisions.