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Cardano price struggles with recovery as ADA bulls confront challenges ahead

  •  Cardano price continues to be stuck in a consolidation pattern.
  • ADA is attempting to target higher levels as the token rebounds from the lower boundary of the prevailing chart pattern.
  • Cardano dropping below $1.00 could spell further trouble for the bulls. 

Cardano price is struggling to lift prices higher although selling pressure eased. ADA may continue to be sealed in a consolidation chart pattern as the token confronts stiff resistances ahead while the buyers attempt to target higher levels.

Cardano price eyes major rebound

Cardano price is locked within a descending parallel channel pattern on the daily chart, suggesting that the token may continue to move sideways. 

ADA has treaded above the lower boundary of the prevailing chart pattern at $1.00 as a reliable support. Cardano price will face the first line of resistance at the 38.2% Fibonacci retracement level at $1.19.

An additional hurdle will emerge at the 50-day Simple Moving Average (SMA) at $1.28, coinciding with the 50% retracement level and the middle boundary of the governing technical pattern.

Cardano price may be confronted with another challenge at the 78.6% Fibonacci retracement level at $1.48, before the bulls target the upper boundary of the prevailing chart pattern at $1.56, intersecting with the 100-day SMA.

Slicing above the topside trend line of the governing technical pattern may signal that the bulls have reversed the period of underperformance, putting further gains on the horizon.

ADA/USDT daily chart

Bigger aspirations will target the 127.2% Fibonacci retracement level at $1.84.

However, if selling pressure increases, Cardano price could fall toward the 23.6% Fibonacci retracement level at $1.08 before ADA slides toward the lower boundary of the prevailing chart pattern at $1.00.

If Cardano price breaks below the downside trend line of the descending parallel channel, ADA could slide toward the demand zone that stretches from $0.72 to $0.81.

 

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