In a notable divergence from the broader cryptocurrency market, Cardano (ADA) has faced challenges in capitalizing on the recent bullish sentiment triggered by the Federal Reserve's decision to reduce interest rates by 0.50% earlier this week.
Cardano (ADA) encountered difficulties capitalizing on the recent bullish sentiment in the cryptocurrency market, despite the Federal Reserve’s decision to reduce interest rates by 0.50%, which sparked gains for major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). While these gains surpassed 5% over the same period, ADA currently trades at $0.3517, reflecting a 2% decline over the past week.
However, technical analysis by Trend Rider, a YouTuber with over 100,000 subscribers, reveals a promising development on ADA’s one-week chart. The ADA Oscillator Wave has turned green for the first time in 46 weeks, indicating a potential bullish reversal. This key technical indicator prompted Trend Rider to personally invest in ADA at its current price.
According to Trend Rider, ADA is now encountering resistance at $0.400, which would represent a 13% increase from its current trading price. If ADA manages to break through this resistance level, it could encounter further resistance at $0.460 and $0.480, which are both long-term resistance levels for the token.
Meanwhile, another technical analyst, Jesse Olson, has also observed a pending buy signal for ADA after the token established a higher low on its daily chart. If this buy signal materializes, Olson anticipates significant price targets for ADA.
Initially, ADA could reach the $0.4500 region, followed by subsequent targets of $0.550 and eventually surpassing $0.620. Olson’s long-term analysis suggests that ADA could hit $0.650 by the end of the year.
Amid these bullish predictions, key support levels must hold to mitigate potential corrections in the coming days. Currently, a critical support level is situated at $0.3445, which has provided stability for the token over the past week, ensuring potential upward momentum in the coming days.
Should the $0.3445 support be breached, the next significant target to monitor is the $0.3296 region, which marks this week’s lower price point for ADA. A drop to this level would indicate a weakening bullish sentiment and could trigger additional selling pressure.
However, the situation could worsen if the bears continue to gain strength. The next major support level to watch is at $0.3150, which would signify a drop of over 10% from current prices. This level is crucial as it has acted as a strong defense for ADA, and its breach could signal a more prolonged downtrend.
Finally, another vital support level is located at $0.3035. This threshold played a significant role in preventing ADA from falling below the $0.300 mark during the market crash that began on August 24. The price reached a one-month low in that period, highlighting the importance of maintaining this support.
The image used is from DALL-E and the chart is from TradingView.com
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