Cardano price is looking to recover its 21% decline after falling to 22-month lows
- Cardano price managed to recover by 11% during intra-day trading hours on November 10
- November 9’s sell pressure invalidated all the bullishness of the last two weeks.
- ADA needs to reclaim the $0.415 price level in order to initiate sustainable growth.
Cardano price took a hit along with the rest of the market over the last three days, falling significantly. However, the third-generation cryptocurrency is rising after the release of upbeat inflation data from the US and is expected to climb back up and flip its critical resistance into support. This will place ADA back at the price point it was before October’s decline.
Cardano price looks up
Cardano price painted a green candle on November 10, rising by 11.04% to trade at $0.352 after US inflation fell to 7.7% from 8.2% in October. This suggests easing liquidity conditions helpful to investors and a weaker US Dollar raising the price of most cryptocurrencies since it is in Dollars that they are priced.
The altcoin, like every other cryptocurrency, had been caught in the crossfire of the Binance and FTX debacle, which led to the crash of the crypto market. After declining by 21.53%, ADA fell through its critical support of $0.330.
Cardano will need support from its bulls to push the price back up to $0.415. This level marks the next critical resistance level, which ADA has been struggling to close above since the beginning of October. If it manages to flip this resistance into support, ADA should find the sustenance to initiate a further recovery.
In order to achieve this 18.46% rise, traders and investors would have to bring some additional buying pressure back into the market. The Relative Strength Index (RSI) bounced off the top of the oversold zone and then rose, indicating Cardano is poised for an upswing.
Furthermore, reclaiming $0.415 would also flip the 50-day (red) Simple Moving Average (SMA) into support which currently stands at $0.401.
ADAUSD 1-day chart
If bearish sentiment takes precedence again, however, Cardano price could retrace to $0.330. If a further downfall initiates, ADA could be looking at $0.261 as its next support. This could initiate a sell-off from investors who plan on minimizing their losses.
Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
