Cardano (ADA) Price Stuck in Horizontal Range Despite Recent Gains
ADA price spikes 14% but still below $0.37 resistance. Despite it trading in a horizontal range, bullish signal was received.
Key Takeaways
- Key resistance at $0.40 remains unbroken.
- The current pattern hints at sideways movement with bullish potential.
- A breakout above the resistance or trendline is crucial for the next trend.
From a peak of $0.80 in March to various support tests throughout the second half of the year, ADA’s price movements have kept traders watching for key breakout levels.
ADA’s position near its resistance could dictate the next major trend shift.
ADA Price Analysis
Cardano’s price has experienced significant volatility this year. It surged to nearly $0.80 on March 14 and fell to a low of $0.32 by July 5.
Following this decline, ADA rebounded by 42% to reach $0.45 on July 17 before dropping to a new low of $0.27 on Aug. 5.
After a brief rally to $0.40 on Aug. 24, ADA encountered another setback, dipping to $0.30 on Sept. 6.
From there, an ascending support trend emerged, pushing the price to a slightly higher peak of $0.42 on Sept. 27. ADA revisited this support on Oct. 10 and has since risen by 12%, currently trading around $0.37 on Oct. 21.
From there, it fell to the horizontal support of $0.32 on Oct. 25 and again on Nov. 4, retesting the level. As support was validated, it shot up by 17% but is still below the $0.37 level.
Despite showing an ascending pattern since Aug. 5, a complete five-wave structure signaling a definitive uptrend has yet to form. ADA continues to trade below the crucial horizontal resistance level at $0.40.
A breakout above $0.40 or a drop below the ascending trendline would likely determine ADA’s next significant move.
ADA Price Prediction
The hourly chart suggests that the upward movement from Aug. 5 to 24 resembles a three-wave ABC corrective pattern, following ADA’s yearly low on Aug. 5.
This analysis indicates that the downtrend after the Aug. 24 high could represent a second corrective phase, followed by another three-wave uptrend forming part of a higher WXY pattern.
Based on Fibonacci extension analysis, a potential price target of $0.30 aligns with previous patterns if the current downtrend mirrors the prior decline from Sept. 27 to Oct. 3.
The most recent dip on Oct. 26 was a temporary breach below horizontal support, quickly rebounding to register an 11% recovery.
However, the price trades sideways, and the breakout above the descending resistance could be the first bullish signal.
In conclusion, while ADA remains in a broader downtrend from its March peak of $0.78, clear reversal signals have not emerged.
Continued downside pressure is expected in the short term, and only a breakout above the descending resistance from December’s high would indicate a stronger rally is likely.
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