ADA Price Struggles: Can Cardano Make a Comeback?
Cardano (ADA) is facing difficulties in breaking above the $0.500 resistance level, causing it to lag behind other altcoins. The cryptocurrency needs to hold above the $0.480 support level in order to initiate a substantial upward movement.
While ADA is currently trading above $0.480 and the 100-hourly simple moving average, it is struggling to gain bullish momentum above the $0.50 mark. However, there is hope as a key bullish trend line is forming with support near $0.480 on the ADA/USD hourly chart.
In recent days, Cardano has seen a recovery wave from the $0.4620 zone, but it has not been able to keep up with the performance of Bitcoin and Ethereum. Although ADA price broke the $0.4750 and $0.480 levels, it failed to sustain upward momentum after reaching $0.510. Consequently, the price experienced a downward correction.
Despite the correction, Cardano remains above the $0.480 support level and the 100-hourly simple moving average. The presence of the bullish trend line and the 61.8% Fib retracement level further support the positive outlook for ADA.
On the upside, immediate resistance is expected near the $0.4980 level, followed by $0.510. If the price can close above the $0.5250 resistance, it will likely spark a strong rally, potentially pushing the price towards the $0.5450 region. Subsequent gains may even lead to a move towards $0.5650.
However, if ADA fails to break above the $0.4980 resistance level, it could face another decline. The immediate support on the downside is anticipated near the $0.450 level, followed by the $0.480 level. A break below $0.480 might open the doors for a test of the $0.4620 support level.
At present, the hourly MACD for ADA/USD is showing bearish momentum, while the hourly RSI is below the 50 level, indicating weakening strength for ADA.
In conclusion, while Cardano is struggling to catch up with other altcoins, the presence of key support levels and the formation of a bullish trend line suggest the possibility of a comeback for ADA. Traders and investors will closely monitor whether ADA can break above the resistance levels and start a strong rally.