Cardano (ADA) is approaching a critical juncture as it looks to retest the key support level of $0.3389. In the recent trading session, the price of ADA has previously risen above this level and is now falling to retest it for the second time, raising concerns among investors and traders.
A successful defense of the $0.3389 support level could signal a potential reversal and new bullish momentum, while a break below this level could lead 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 a trading volume of over $240 million, ADA is down 0.69% at the time of writing, trading at around $0.3462. In the last 24 hours, the market cap has decreased by 0.68% and the trading volume has decreased by 26.44%.
Current Technical Indicators: What They Show About Cardano
On the 4-hour chart, Cardano is trading below the 100-day simple moving average (SMA) and is currently in a downtrend towards $0.3389. Given this bearish sentiment, it is likely that the bears will continue to exert control and push the price up to this critical level.
Analysis of the 4-hour synthetic trend oscillator shows that both the signal line and the SMA line of the indicator have successfully crossed the 0 line and are currently approaching the buying overheat zone. This suggests that the current decline may be temporary and the bulls may take control again at $0.3389.
On the 1-day chart, Cardano is still trading below the 100-day SMA and is trending down towards $0.3389. This means that the bears are currently in control and the price is likely to go lower.
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, entering the overheated selling zone. This indicates that a reversal may occur if the price of ADA reaches $0.3389.
Analysis: Potential Outcomes If $0.3389 Support Holds or Fails
According to the analysis of the potential outcomes, Cardano price may reach the $0.3389 support level and if this key level holds, it may start to rise towards the $0.4233 resistance level. If the price successfully breaks this resistance level, it may continue to test higher levels.
However, if the $0.3389 mark fails to hold and the price drops below this level, the digital asset may continue to decline towards the $0.2388 range. If this level breaks, the crypto asset may experience further price declines towards other support marks below.