Cardano (ADA) has been facing declined over the last couple of days, with over 7% yesterday and 3.73% decline over the past 24 hours. At press time, it was trading near the $0.80 level.
Despite that decline, technical analysts pointed out that the ADA price might be entering a bullish phase as a result of chart repetitions and key long-term support points.
Cardano Price Fell Over but Held Support Above $0.7
Cardano price fell from a daily high of $0.86 to an intraday low near $0.770, triggering a wave of market speculation.
As of the time of writing, the altcoin price was trading at $0.8006 with a 3.7% over the past 24 hours. This drop followed broader market pressure and short-term selling activity.
However, volume has reduced about 10% to $1.96 billion, suggesting reduced participation from both buyers and sellers.
Despite the correction, ADA price held firm above the $0.77 level, a zone that has acted as a base during extended consolidations.
Regardless, Cardano was still among the 10th largest cryptocurrency in terms of market capitalization.
Cardano Bounced Off the 50-month Moving Average
Meanwhile, technical analysis by TrendRidersTR pointed out that Cardano price has bounced off its 50-month moving average.
This was a key hedge line to long-term investors. In the past, assets with price action above such a moving average have often formed accumulation zones and developed strength to push it upwards.
Additionally, the bounce from this moving average suggested that long-term holders were still active.
The retest of this zone, followed by a price rebound, provided structural confirmation that the range between $0.70 and $0.80 may continue to serve as support for the current market cycle.
The analysts noted that Cardano may sustain a price above this average in the coming weeks.
Historical Falling Wedge Patterns Have Led to Breakouts
Another analyst, Javon Marks, shared a long-term Cardano chart where falling wedge patterns were repeated.
These structures tend to show up in market corrections and are often attributed to trend reversal when Cardano price breaks above the upper resistance line.
The altcoin has formed such patterns in multiple previous cycles, each time followed by a rally.
Furthermore, the chart illustrated a repeating wedge formation, breakout, and rally. In past cycles, ADA surged shortly after exiting the wedge pattern.
More so, the latest falling wedge pattern on Cardano price chart followed the same inclination and technical development as previous rallies.
Early signs of a breakout have already appeared, and the structure remained intact despite the recent price drop.
Consequently, this suggested short-term volatility may be met with market absorption rather than panic selling.
If Cardano price continues to build support above $0.75, the technical analyst projected the next resistance levels between $0.88 and $1.00.
ADA Faces Pressure Near Channel Support Levels
More so, an ADA/USDT chart showed Cardano pulling back from the upper resistance of a rising channel pattern.
After testing highs near $0.95, ADA retraced and was trading near its 50-period SMA on the 4-hour chart.
Analyst Sebastian marked the range around $0.7 as a potential bounce zone near the ascending trendline support.
While ADA price hit the target zone, the bounce appeared weak, with RSI dipping near 40 and failing to confirm bullish divergence.
The volume spike during the recent drop signals selling pressure, but no reversal has formed.
