Cardano price prediction shows short-term support near $0.39

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  • Cardano has a bullish structure on the daily.
  • The range breakout appeared to fail, and bulls needed to act quickly to fix this.

As a seasoned researcher with years of experience in the cryptocurrency market, I have witnessed numerous trends and patterns unfold. The current situation with Cardano [ADA] presents a mixed bag of opportunities and challenges.

Last week, Cardano (ADA) experienced significant surges in value. Specifically, from September 23rd to the 27th, ADA increased by approximately 20% and almost reached the potential resistance level of $0.418. Technically speaking, the indicators were favorable for a bullish trend.

It seemed like a significant gathering was about to take place, and the rise in active Bitcoin addresses indicated that organic interest might significantly grow. However, Bitcoin’s drop at the $66k barrier had a negative influence on Cardano’s prices.

A positive outlook for Cardano’s future prices was anticipated, but the lack of regaining the recent pullback level has raised some concerns.

Range breakout falters momentarily

As a researcher, I analyzed the price decline in July and early August, then applied the Fibonacci retracement tool to determine potential support levels for future price movements.

The important 78.6% pullback point, located at $0.418, serves as a critical milestone for Cardano’s bulls to surpass if they aim to reverse the overall trend and move it towards a more positive direction.

Over the past two months, a price band from approximately $0.312 to $0.393 has been formed. Last week’s optimistic feelings propelled ADA above the upper limit of this band, but it did not surpass the Fibonacci retracement level at around $0.418.

Over the last 3 days, there’s been a decrease in price by 7%, but the Capital Movement Factor (CMF) remained above 0.05, suggesting substantial investment inflow. Additionally, the Daily Relative Strength Index (RSI) indicated a surge in bullish energy.

In other words, there’s a chance that the $0.387 level might act as temporary resistance for further price drops before we see another uptrend.

Cardano price prediction after $0.39 liquidity

In the past few trading hours, there’s been a considerable amount of liquidity accumulated near the $0.39 mark for Cardano. Given this situation, it seems plausible that the price could experience a bullish reversal and move towards the $0.408 region.

Read Cardano’s [ADA] Price Prediction 2024-25

Despite a bearish trend for Bitcoin in the immediate future, there’s potential for this sentiment to negatively impact Cardano’s price later in the week as well.

Hence, traders should be cautious and plan around a potential rejection from the range highs.

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2024-09-30 16:07