Time for ADA bulls to fly back above $0.42 as trifecta of support in Cardano price bound to kick in
|- Cardano price gears up for a potential 25% uptick.
- ADA sees the decline slowing down as massive support awaits a test.
- Expect bulls to buy the dip and see a strong rally above $0.40.
Cardano (ADA) price has been tanking near 17% after its peak in April when bulls could head above $0.46 briefly. Since then, it has been a one-way ticket to the downside with not much outlook for a rebound. Until now that is – as a trifecta of supportive elements is just around the corner and ready to not only underpin the price action in Cardano but trigger a bounce back upwards.
Cardano price has bulls getting ready for the bounce
Cardano price has retreated firmly since mid-April after bulls stuck their noses in the window near $0.46. Since then, ADA has been sliding lower and lower, giving up plenty of key areas without much reason for a rebound. Cardano's price is now nearing $0.37, and that area is one to look out for as a bull.
Not only is ADA trading around that level at the monthly pivot, which worked well at the beginning of April. It bears as well the 55-day Simple Moving Average (SMA) that has been acting as both resistance and support in March. Add in that equation the Relative Strength Index (RSI) that is still very much on the low side, and these three elements are enough to incentivize bulls for a bounce back up to $0.42 and a retest of $0.46 on the top side.
ADA/USD 4H-chart
The threat of more downside lies in the element that the RSI is already trading near 40, which means still some downside is in the cards. When the monthly pivot breaks, expect to see another small 10% drop toward $0.35 and a test of the 200-day SMA for support. By then, the RSI will have moved into oversold territory and limit any further downside moves for now.
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