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Cardano (ADA) Holds $0.32 Support but Stuck in Sideways Movement

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • ADA’s price holds below the critical $0.40 resistance.
  • Current ascending support suggests potential upward momentum.
  • The downtrend persists; a breakout is needed for trend reversal.

Cardano (ADA) has experienced significant price fluctuations recently, with notable highs and lows suggesting a volatile market.

Despite temporary recoveries, ADA remains within a downtrend. This analysis examines recent price movements, potential reversal indicators, and key support and resistance levels.

ADA Price Analysis

The price of ADA reached nearly $0.80 on March 14 before dropping to a low of $0.32 on July 5.

After this dip, the price bounced back by 42% to peak at $0.45 on July 17, only to fall to a new low of $0.27 on Aug. 5.

Following a brief recovery to $0.40 on Aug. 24, ADA faced another pullback, dipping to $0.30 on Sept.6. An ascending support level emerged, with the price climbing to a slightly higher high of $0.42 on Sept.27.

ADA returned to this ascending support on October 10 and bounced 8% to trade at $0.36.

ADA price analysis
ADAUSD still undecisive | Credit: Nikola Lazic/Tradingview 

Despite an ascending pattern forming since Aug. 5, a complete five-wave structure has yet to appear, which would signal an established uptrend. ADA remains below the critical horizontal resistance at $0.40.

A breakout above $0.40 or below the ascending trendline will likely indicate ADA’s next primary trend direction.

ADA Price Prediction

The hourly chart reveals that the uptrend from Aug. 5 to 24 appears as a three-wave movement, suggesting an ABC corrective wave after ADA hit its yearly low on Aug. 5.

This analysis implies that the downtrend after the Aug.t 24 peak could mark the second correction, with a subsequent three-wave uptrend as part of a higher degree WXY pattern.

Using the Fibonacci extension, a price target of $0.30 aligns with the projection if the downtrend mirrors the previous decline from Sept. 27 to Oct. 3.

ADA price prediction
ADAUSD ascending resistance interaction awaited | Credit: Nikola Lazic/Tradingview 

Its latest low on Oct. 26 was a brief spike below its horizontal support, but it quickly rose above it, resulting in an 11% recovery.

If ADA holds now overcomes ascending resistance at $0.35, a potential bounce to at least $0.40 remains possible.

In summary, ADA remains in a downtrend from its March high of $0.78, with no clear signs of a reversal. Further downside is expected in the short term, and only a breakout above the descending resistance from December’s high would strongly suggest a potential rally.

Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.
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