Main Points:
Strong rallies are usually followed by equal sharp decline. That’s what happened to many Altcoins, and Cardano (Ada) is no exception. Usually, the pullback shakes the weak hands before continuing the upbringing.
Was ADA ending in a near term, or is the DIP is a great purchase opportunity? Let’s review the charts to find out.
Cardano’s price prediction
ADA broke more than $ 0.86 overhead resistance on Monday, but Bulls could not maintain a higher level.
The price turned away Wednesday and fell under the breakout level of $ 0.86. The Bears pulled the price towards a 20-day simple transfer of average ($ 0.73) on Thursday, but the long tail in the candle shows a steady purchase at a lower level.
Bulls will try to challenge the overhead resistance of $ 0.94. If the level crosses, the ADA/USDT pair can climb to $ 1.02 and later to $ 1.17.
Especially, if the price drops and breaks below the 20-day SMA, it suggests that the breakout above $ 0.86 can be a bull trap. The pair can plunge into 50-day SMA ($ 0.66).
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The moving averages are on the edge of a bearish crossover in the 4 -hour chart, indicating a comeback attempt of bears. Recovery attempts are likely to deal with the sale at 20-sma.
If the price drops from 20-smma, the pair can drop to $ 0.75 and later to $ 0.70. The deeper the fall, the greater time the time is likely to take for the next uptrend leg to start.
Consumers will have to drive the price above the 20-sma to get back to the driver’s seat. If they do that, the pair can rise to $ 0.90 and subsequently to $ 0.94.
This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.
