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NEW DELHI (CoinChapter.com) — Cardano (ADA) shows bullish signs above $0.320. The current price action signals a possible bottom and a surge toward $0.675 or even $0.900.
Cardano Price Bottom In Place?
After a nasty decline in 2021 and 2022, ADA’s price settled below the $0.500 pivot. Cardano even dived below the $0.300 level before the bulls took a stand. A new multi-month low was formed near $0.2205 before the price started a recovery wave.
Bitcoin and Ethereum regained strength in the past few weeks, but ADA failed to capitalize and gained nominally. Now, a few positive signs are emerging on the weekly chart. The price broke a major bearish trend line with resistance near $0.315.
ADA price settled above the $0.320 resistance zone and the 50-week simple moving average (blue). It seems like the price is carving a possible medium-term bottom.
If the price stays above the 50-week simple moving average (blue), there could be a steady increase. The first major resistance on the upside is near the $0.675 level. The next major resistance is near the 23.6% Fib retracement level of the last crucial drop from the $3.09 swing high to the $0.220 low at $0.899.
A weekly close above the $0.900 resistance could confirm a bottom at $0.220. In the stated case, Cardano could rally toward the $1.50 level or the 50% Fib retracement level of the last crucial drop from the $3.09 swing high to the $0.220 low in the coming months.
False Break in ADA?
The ADA price could correct lower if no move is above $0.400 or $0.420. Immediate support is near the $0.355 level. The first major support is near the same trend line, and the 50-week simple moving average (blue) is at $0.320.
It might spark bearish moves if Cardano closes below the $0.320 support. The next major support is near the $0.300 handle, below which there is a risk of a drop toward $0.268. Any more losses might increase selling pressure and cost $0.220.
Overall, ADA is signaling a possible bottom at $0.220. If the bulls remain in action, Cardano could rally further toward the $0.650 level or $0.900. Conversely, the price could be lower and revisit the $0.320 support zone.
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