On Wednesday, the US Federal Reserve’s Federal Open Market Committee (FOMC) announced its decision to raise interest rates by 25 basis points. These results aligned with the market expectations, causing a slight uptick in the crypto market.
As a result, the Cardano price shows a 1.12% intraday jump and rebounded from the combined support of $0.3 and ascending support trendline. Can this price reversal reclaim the lost ground amid recent corrections?
Also Read: Cardano News: 4 Recent Launches, Upgrades Investors Should Know
Cardano Price Daily Chart
- The formation of a double bottom pattern set the ADA price for a 22% rally
- The $0.3 stands as a strong demand zone for crypto buyers
- The intraday trading volume in the ADA coin is $203.5 Million, indicating a 13.6% gain
Source- Tradingview
The last correction in the Cardano price found suitable support at the $0.3 psychological level. This horizontal level aligned with the 50% Fibonacci retracement level creates a high area of interest( AOI) and reflects a healthy retracement for the continuation of a bullish rally.
Amid the two weeks of consolidation above $0.3, the ADA price rebounded twice from the aforementioned support indicating the formation of a double bottle pattern. This bullish reversal pattern reflects active accumulation from buyers which bolsters a significant upswing in the near future.
The anticipated reversal should challenge the $0.33 neckline resistance for a bullish breakout. A post-breakout rally could surge the altcoin price by 10% to hit the $0.365 mark.
Will ADA Price Prolong Correction Trend to $0.25?
In case the eighth largest cryptocurrency- Cardano continues to face overhead supply pressure, the sellers could attempt a breakdown below the ascending trendline. The price drop with the daily candle closing below the dynamic support will accelerate the supply pressure and plummet the coin’s market value back to $0.276 support, followed by $0.25.
- Exponential Moving Average: The coin price below daily EMAs(20, 50, 100, and 200) indicates the market participants will face the least resistance for carrying the price lower.
- Moving Average Convergence/Divergence: A potential bullish crossover between the MACD(blue) and signal line(orange) of the higher time frame chart reflects the short-term trend remains positive.
