Regaining the #1 spot as the project with 500+ daily submissions on GitHub, Cardano finds high development activity. However, despite this, the ADA coin price hovers above the 25 cents mark after the recent 29% downfall from the resistance trendline.
Maintaining a downtrend for the past four months, failing bullish recovery attempts by Cardano generates a strong resistance trendline. The declining trend brings the ADA price to a discount of 40% and tests the 25-cent bullish barrier more than twice.
Nevertheless, the strong support present at $0.25 helps ADA’s price bounce back.
Currently, the ADA price action hints at a double bottom forming with $0.25 as the base and neckline at $0.0.274. With an intraday growth of 0.78% following the 3.63% gain last night, a spike in ADA price attempts a breakout event.
Supporting the bullish recovery, the RSI indicator showcases solid bullish divergences at $0.25. The divergence is present from the past dip in June 2023 to the most recent double bottom forming at $0.25. Such a long divergence hints a sharp recovery move coming shortly.
Cardano’s recovery rally will face 50-day EMA resistance before reaching the trendline, then 200-day EMA on breakout. Therefore, the uptrend will have to cross a resistance minefield.
Optimistically, the RSI-powered breakout rally can push the ADA price higher to $0.35 at least, if not $0.45. On the flip side, a downfall below $0.25 will put higher selling pressure on Cardano, dropping to $0.229.
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