Cardano (ADA) Recovery Faces Hurdles as Broader Market Sentiment Falters

With an intraday jump of 4.27%, Cardano ranks lowest in the top 10 crypto-list with a market cap of $12.26 Billion. Trading at $0.341

Cryptocurrency markets are experiencing a demand crunch, which could halt Cardano’s recovery. Will ADA begin a bull cycle this week with a breakout from a weekly triangle?

Cardeno ranks lowest in the top 10 crypto-list with a market cap of $12.26 Billion, showing an intraday rise of 4.27%. Trading at $0.341, the intraday recovery forms a bullish piercing candle, hinting at a new bull cycle.

As trading volumes rise to support a recovery run, Cardano finds itself at a crucial support trendline. Let’s analyze the ADA price chart to identify entry points for the upcoming rally.

Cardano Fate Rests Within Weekly Triangle

Cardano’s recent bull cycle failed to reach the overhead trendline, prompting another retest of a support trendline on the weekly triangle.

Last week, Cardano fell to $0.27 before a bullish comeback brought the closing price to $0.328. As a result, buyers continue to maintain strong support above the $0.30 level.

Beginning the week on a bullish note, Cardano rose by 4.27% to form a bullish candle. This raises the possibility of a morning star pattern to reinitiate a bull cycle.

However, the uptrend's sudden failure delays the bullish crossover in the MACD and signal lines. Despite this, the weekly RSI line maintains similar values despite a drop in bottom formation. Consequently, the RSI line showcases a bullish divergence, bolstering the chances of an uptrend.

4-Hour Chart Reveals Retest Run in Cardano

Anticipating a morning star in the weekly chart, Cardano prepares for a large-scale bullish cycle in the shorter timeframes.

On the 4-hour chart, Cardano takes another retest of the broken trendline.

According to Fibonacci levels, a sideways trend is evident between the 23.60% and 38.20% Fib levels. Currently, a mini bull cycle is underway with three consecutive bullish candles, heading towards $0.35.

Moreover, the recovery crosses the 20 EMA at $0.343, while all other crucial EMAs (50, 100, and 200) maintain a bearish alignment at $0.346, $0.361, and $0.379 on the 4H chart.

Will Cardano Surge?

As the broader market sentiment faces critical conditions, Cardano’s recovery run encounters several obstacles.

Based on Fibonacci levels, ADA finding support at $0.331 shows underlying strength.

Therefore, a bullish breakout of the overhead ceiling at $0.354 will amplify bullish momentum in Cardano. If the uptrend manages to sustain itself, ADA could potentially scale to $0.390 or $0.449 this week.

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