Cardano price prediction remains bullish for the long term till ADA price holds the demand zone. It suggests ADA crypto price looks oversold and a pullback rally is possible.
ADA price is trading below the downward-sloping 50-day and 200-day EMA indicating a down trend. However, the prices had gone far away from the EMAs so a bounce back may come anytime to test the EMA.
Cardano price is inside bears’ grip and lost the majority of the gains generated in the past few months. In August, ADA crypto price dropped below the crucial support of $0.3000 level. It hurts the sentiment of its investors and invites further decline.
In the mid of August, sellers tried to break the $0.2500 support to drag the prices further down. But luckily, the responsive buyers came and succeeded in defending the support.
Later, Cardano crypto price entered into the narrow range consolidation and showed signs of base base formation. Cardano price is trading at $0.2557 with an intraday decline of -0.20%. The 24-hour volume to market cap is 1.27%.
Will Cardano Price be Able to Defend the Demand Zone?
Cardano price prediction suggests buyers are trying their best to rebound and pull pullback rally might arrive soon. The correlation of ADA price with Bitcoin is 0.88 which is quite high. So, if BTC recovers then ADA crypto might also witness buying from the lower levels.
Till Cardano’s price sustains above $0.2221 the buyers will remain active and the downside will be limited. However, if the prices slip below $0.2221, then we might see new lows.
Moreover, if the buyers in Cardano crypto manage to climb above the 50-day EMA then a short-term bullish trend reversal is possible.
ADA Price Formed a Hammer Candle
ADA price forming a hammer candle on a weekly time frame. Presently, the prices are stuck in the range and consolidating for short-term base formation. If the buyers succeed in breaking the higher range then the probability of recovery will increase.
The MACD curve sloped sideways indicating prices lacked direction. The RSI of Cardano crypto is at 37 denotes weakness. But it is near oversold territory due to which relief rally might trigger any time to clear out previous shorts.
Conclusion
Cardano price prediction suggests ADA price is near to oversold territory so a relief rally is possible. ADA crypto price is consolidating for the base formation. Therefore, it might take a U-turn from the demand zone to clear out previous short positions.
Technical levels
- Resistance levels: $0.3000 and $0.3500
- Support levels: $0.2500 and $0.2221
