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Cardano Price Back At $0.63 Resistance — Will ADA Go Over $0.70 This Time?

Last Updated February 27, 2024 3:16 PM
Nikola Lazic
Last Updated February 27, 2024 3:16 PM
By Nikola Lazic
Verified by Peter Henn

Key Takeaways

  • Cardano’s recent rebound challenges $0.63 resistance.
  • Potential for further drop or new bullish cycle.
  • Analyst suggests possible correction ahead for ADA.

After reaching a high of $0.68 on December 13, the price of Cardano made a downturn. It fell to a low of $0.45 on January 23 but followed the general market and recovered since then. On February 20, it came close to its previous high but stopped at the $0.63 resistance level. 

After a pullback, it is again around that mark, attempting to push through. Will it manage this time? If it does, can it surpass its December high to reach above $0.70? 

ADA Price Analysis 

Cardano saw its price rise from October 19. After bouncing off a support level at $0.23 it climbed to a peak of around $0.70 by December 13. The next downturn, however, led Cardano‘s price to retest a resistance level it had previously surpassed. A low on January 22 of $0.45 was the same as its high on April 14, 2023.

This pattern indicates the October 19 rise could have marked the start of a new bullish cycle. Although there has been a recovery, there’s potential for Cardano’s price to drop a bit more.

Daily chart.
Cardano at its previous resistance.

The $0.40 level emerges as a crucial, yet untested, price point, implying a further 18% decrease from the current prices, marking the end of this correction phase.

The recovery observed on January 22 might represent an ABC corrective pattern, with the subsequent phase potentially elevating the price above $0.60. Breaking past the $0.60 threshold could signal a new bullish trend, veering away from a potential fall to the $0.40 region.

There are now two possibilities ahead. Either the ABC correction from December ended on January 22, or that was only its wave A. If it ends, the rise from January’s low is the next uptrend, leading the price into a much more significant rise, potentially to $1. 

Alternatively, the correction hasn’t ended, and the current rise is wave B, meaning there is one more downtrend before its wave C is complete. In that case, Cardano could go to another low of $0.40 before it starts the next anticipated uptrend to $1. 

Analyst Points At Bearish Outlook

On February 23, analyst Ali Martinez, shared his bearish view in an tweet , claiming that ADA was likely headed into a correction. 

The TD Sequential is a technical analysis tool used to detect conditions of being overbought or oversold, thereby creating signals for trading opportunities. Ali’s analysis suggests that ADA could be set for a downturn following its recent rally, but the eventual outcome remains to be seen with time.

With the rise seen since then, this possibility could get invalidated, but the price pattern hasn’t changed much on the higher time frames he referred to. 

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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