ADA Price Prediction: Healthy Retracement to Key Fibonacci Level Prepares Cardano Price for 16% Rally

ADA Price Prediction: Amid the increasing negativity in the crypto market, the Cardano price showcased a V-top reversal from the peak of $0.46. This correction tumbled the altcoin by 18% and plunged to 32.8% Fibonacci retracement level at local support of $0.377. A retracement to the aforementioned FIB level is considered healthy and increases the possibility of uptrend resumption.

Key Points: 

• The formation of a double bottom pattern could trigger a fresh recovery in Cardano price 
• The post-correction recovery could surge the ADA price 16% higher to challenge the $0.46 swing high
• The intraday trading volume in the ADA coin is $289.5 Million, indicating an 8.6% gain

Source- Tradingview

The ongoing correction phase in Cardano price has taken a minor halt at the combined support of $0.377 and 38.2% FIB level. Moreover, the sideways movement above the mentioned support reveals the formation of a double-bottom pattern.

A reversal pattern at crucial support increases the possibility for ADA price to resume the prevailing recovery rally. By the press time, the Cardano price traded at $0.385 with an intraday gain of 0.13%.

Also Read: 15 New Cryptocurrencies In Upcoming Binance Listing For 2023

With sustained buying the coin price is likely to breach the $0.3977 neckline resistance, which will accelerate the underlying bullish momentum. If the potential reversal pierces the $0.41 resistance at the 23.8 FIB level, the buyers will raise the price another 12.75% to hit the $0.46 peak.

Conversely, if the buyers failed to sustain above $0.41, the Cardano price will remain under the threat of further correction and a breakdown below the 38.2% retracement level.

Technical Indicator

Relative Strength Index: the 4-hour chart RSI slope showing evident bullish divergence gives additional confirmation for price recovery.

Exponential Moving Average: the crucial EMAs(50, 100, and 200) accumulated between the $0.41 and $0.397 barrier accentuate the high resistance zone which needs to be breached for further recovery.

Cardano Coin Price Intraday Levels

• Spot price: $0.395
• Trend: Bullish
• Volatility: Medium
• Resistance level- $0.397 and $0.4
• Support level- $0.382 and $0.378

The post ADA Price Prediction: Healthy Retracement to Key Fibonacci Level Prepares Cardano Price for 16% Rally appeared first on CoinGape.