Cardano Price Recovers 43% But Trades Sideways Below $0.45 – Where is ADA’s Next Target?

Key Takeaways

• Cardano rebounded from $0.32 to $0.45.
• $0.50 is a key resistance level for ADA.
• Cardano can surge as high as $1.

On July 5, Cardano fell to a low of $0.32, concluding a 113-day downtrend. A subsequent recovery pumped the price by 43%, reaching $0.45 on July 16. Since then, ADA has been trading sideways at approximately $0.42. However, there are signs that it may be entering its next bullish phase.

Will ADA surpass the $0.45 mark again, and if so, what is its next target?

ADA Price Analysis 

Since peaking at $0.80 in March, Cardano entered a downtrend, falling to $0.40 by April 13. It attempted a recovery by April 23, climbing back to $0.53, but soon encountered resistance from a descending trendline originating from the March high.

Cardano has since breached its horizontal support, dropping to a low of $0.32 on July 5, interacting with the 0.786 Fibonacci level before rebounding by 20%. The daily Relative Strength Index (RSI) fell to an oversold level of 32%, suggesting a potential significant recovery for ADA. Additionally, the daily MACD indicated a bullish convergence with green oscillator bars.

To confirm a major recovery, Cardano must rise past the $0.50 mark and establish a higher low during any subsequent downturn. If this occurs, ADA could potentially reach as high as $1. Should the recent movements mark the end of its larger wave two correction, the next uptrend could be its third wave, typically following a 1.618 Fibonacci extension. In this scenario, ADA could even surpass $1.

ADA Price Prediction 

Zooming into the hourly chart, we can see that the price has developed three waves and is now in a descending channel. After completing this descending channel, it could approach the $0.50 level, which could conclude a five-wave pattern and also confirm that ADA has started a new uptrend. 

However, its second major confirmation could come on the expected retracement to a first higher low. Should we see this playing out, ADA could return to the $0.40 area. However, it should then bounce, kickstarting an upturn. 

In that case, its next likely target would be $0.68, while the end of the rally should be around $0.74.