This is the biggest challenge Cardano price faces

Cardano price faces the 8-day EMA coinciding with the weekly open at $0.484.
Investors can expect ADA to rally 13% to retest $0.550 after clearing this hurdle.
A four-hour candlestick close below $0.435 will invalidate the bullish thesis.

Cardano price shows an interesting outlook as it faces off a resistance confluence. This hurdle will decide which direction ADA will proceed in the near term. Considering the consolidation and the recent recovery rallies, investors can expect a bullish outcome.

Cardano price at inflection point

Cardano price has tried overcoming the 8-day Exponential Moving Average (EMA) twice over the last week and was rejected both times. After both of these corrections, ADA’s consolidation is again slowly heading toward the said EMA at $0.484, which coincides with the weekly open.

Hence, this confluence makes it a tough challenge for bulls. However, overcoming this blockade will indicate that the bulls are serious and have enough juice. This development could further propel ADA to the next hurdle at $0.542 after a 13% rally.

Interestingly, this resistance barrier is also a confluence due to the presence of the 34-day EMA. In some cases, Cardano price might extend the run-up and tag the 50-day EMA at $0.588 or reach for the round number at $0.60.

This move would constitute a 21% ascent from the $0.484 level and is likely where the upside is limited for Cardano price.

ADA/USDT 4-hour chart

On the other hand, if Cardano price faces rejection at the $0.484 confluence, it will indicate the weak state of the buyers and not enough bullish momentum. This development could see ADA retrace to the $0.435 support level.

Here, buyers would have a chance at a comeback. However, a four-hour candlestick close below this level will create a lower low and invalidate the bullish thesis for ADA. This situation may further result in a capitulation that could potentially crash Cardano price by 12% to $0.380, the weekly support level.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram