Cardano (ADA) is approaching a critical juncture as it is expected to retest the key support level at $0.3389. In recent trading sessions, the price of ADA had previously risen above this level and is currently falling to make a second retest, raising concerns among investors and traders.
A successful defense of the $0.3389 support level could signal a potential reversal and renewal of bullish momentum, while a break of this level could open the door to further declines. This article aims to analyze the significance of the $0.3389 support level for Cardano and whether bullish momentum can sustain ADA above this key threshold by examining technical indicators and market sentiment.
With a market cap of over $12 billion and trading volume of over $240 million, ADA price is down 0.69%, trading at around $0.3462 at the time of writing. Over the past 24 hours, the market cap is down 0.68%, while trading volume is down 26.44%.
Current Technical Indicators: What They Reveal About Cardano
On the 4-hour chart, Cardano is trading below the 100-day basic moving average (SMA) and is currently experiencing a downtrend towards the $0.3389 level. Given this bearish sentiment, it is likely that the bears will continue to exercise control and push the price towards this critical level.
Analysis of the 4-hour Composite Trend Oscillator indicator reveals that both the signal line and the SMA line of the indicator have successfully crossed the zero line and are approaching the overbought zone. This suggests that the current decline may be fleeting and that the bulls may regain control at the $0.3389 level.
On the 1-day chart, the Cardano stock price is still holding below the 100-day moving average and is trying to make a downward move towards $0.3389, which means that the bears are currently in control and this could potentially trigger a drop in price.
Finally, on the 1-day chart, both the signal line and the SMA line of the composite trend oscillator have fallen below the zero line into the oversold zone. This indicates that ADA price may reverse after reaching $0.3389.
Analysis: Potential Outcomes If 0.3389 Support Holds or Fails
Analysis of the potential outcomes indicates that if the Cardano price reaches the $0.3389 support level and holds this key level, it could start to rise towards the $0.4233 resistance level. If the price successfully breaks through this resistance, it could continue to test higher levels.
However, if the $0.3389 level fails to hold and the price falls below this level, the digital asset could continue to decline towards the $0.2388 range. If this level is breached, the crypto asset could experience further price declines towards other support levels below.
