In a notable divergence from the broader cryptocurrency market, Cardano (ADA) has faced challenges in capitalizing on the recent bullish sentiment triggered by the Federal Reserve’s decision to reduce interest rates by 0.50% earlier this week.
While major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) have seen gains exceeding 5% in the same timeframe, ADA currently trades at $0.3517, reflecting a 2% decline over the past week.
Buy Signals For Cardano
Despite these short-term setbacks, analysts remain optimistic about Cardano’s future price trajectory. Trend Rider, a technical analyst, has highlighted a significant development on ADA’s one-week chart: the ADA Oscillator Wave has turned green for the first time in 46 weeks.
This indicator suggests a potential bullish reversal, prompting Trend Rider to personally invest in ADA at its current price. He identifies a key support level just below the current price at $0.3150.
Looking ahead, Trend Rider believes ADA is poised to test a resistance level at $0.400, which would represent a 13% increase from its current trading price. Such a move could pave the way for further upward momentum, potentially pushing Cardano toward long-term resistance levels of $0.460 and $0.480.
Another analyst, Jesse Olson, has also expressed a bullish outlook for Cardano, observing a pending buy signal after the token established a higher low on its daily chart.
Olson has identified significant price targets that could be realized if the buy signal materializes. He suggests that ADA could first reach the $0.4500 region, followed by subsequent targets of $0.550 and eventually surpassing $0.620, with a long-term goal of hitting $0.650 by the end of the year.
Supports To Watch For ADA
Amid these bullish predictions for the Cardano token by both analysts, key levels must hold to mitigate potential corrections in the coming days. Currently, a critical support level is situated at $0.3445, which has provided stability for the token over the past week, essential for maintaining potential upward momentum in the coming days.
Should the $0.3445 support be breached, the next significant target to monitor is the $0.3296 region, which represents this week’s lower price point for ADA. A drop to this level would indicate a weakening bullish sentiment and could trigger additional selling pressure.
However, the situation could worsen if the bears continue to gain strength. The next major support level to watch is at $0.3150, which would signify a drop of over 10% from current prices. This level is crucial as it has acted as a strong defense for ADA, and its breach could signal a more prolonged downtrend.
Further down, another vital support level is located at $0.3035. This threshold played a significant role in preventing ADA from falling below the $0.300 mark during the market crash that began on August 24. The price reached a one-month low in that period, highlighting the importance of maintaining this support.
Featured image from DALL-E, chart from TradingView.com