- Cardano price dives to the years’ last line of defense and most formidable support at $1.
The formation of a double-bottom pattern points toward potential recovery to $1.5.
Cardano bled profusely alongside other cryptocurrencies in the market on Monday and Tuesday. The losses are likely to have come into the picture amid the bullish camp’s exhaustion. In other words, buyers feel unrewarded for the effort put into the market.
Probably crypto assets have not bottomed amid the ongoing bear run since the all-time highs trades sometime in April. Bitcoin still trades under $30,000 while Ethereum is stuck between support at $1,750 and resistance at $1,850.
Cardano is trading slightly above $1 after securing crucial support at the same level. Minor resistance is anticipated at $1.1, which could delay the recovery. Short-term technical indicators suggest that bulls are gradually gaining control.
Cardano Price Aims For Massive Recovery To $1.5
The Moving Average Convergence Divergence (MACD) adds credence to the bullish outlook on the four-hour chart. This trend-following tool may soon present a buy signal, as the 12-day exponential moving average crosses above the 26-day EMA. The odds for a strong recovery will rise as the MACD closes the gap toward the mean line (0.00).
According to the Relative Strength Index (RSI), Cardano is mainly in the bulls’ hands in the same four-hour timeframe. As the RSI follows ADA’s trend, it also calculates its strength. The rebound from the oversold region toward the midline speaks loudly of the growing bullish grip.
It is essential to realize that Cardano has formed a highly bullish technical pattern. The double-bottom pattern came into the picture when the support at $1 was tested twice but held steady. A recoil is expected to emanate from this solid buyer congestion zone and perhaps, uplift ADA toward $1.5.
Several resistance levels stand in the way of the ultimate upswing at $1.2, highlighted by the 50 Simple Moving Average (SMA) and $1.3 illustrated by the 200 SMA.
Cardano Intraday Levels
Spot rate: $1.07
Trend: Bullish bias
Volatility: Expanding
Support: $1
Resistance: $1.2 and $1.3
