- Cardano price pares its biggest daily loss in three weeks, but recovery needs validation.
- Upbeat Stochastic and the convergence of 8.5-month resistance with the 10-day SMA create a strong hurdle for ADA bears.
- Multiple supports challenge Cardano’s downside below $0.8900, while a daily close above $0.9900 may revive bullish confidence.
- Cardano stays overall bullish, with short-term recovery likely despite the recent pullback.
Cardano (ADA) price jumps over 1.0% to around $0.9370, paring the biggest daily loss in three weeks on Tuesday. In doing so, the altcoin continues short-term consolidation after hitting a six-month high on August 14.
ADA’s daily trading volume reflects ongoing consolidation, holding around $2.25 billion on Tuesday, according to Santiment. Meanwhile, its market cap rebounds to $33.09 billion, recovering from Sunday’s pullback after hitting its highest level since March.
Cardano’s momentum takes support from a key zone where the 10-day Simple Moving Average (SMA) meets an 8.5-month previous resistance line, making it tough for bears to take control and favoring the price rebound. The upbeat Stochastic indicator also supports recovery hopes.
Hence, ADA’s latest price action can be considered a healthy consolidation, preparing for the next upward move, rather than an early sign of bearish breakdown.
Cardano Price: Daily Chart Highlights Immediate Bouncing Points
Cardano has been consolidating for five days above the $0.8900 level, where the 10-day SMA meets a previous resistance line from early December 2024. The Stochastic indicator, which was overbought above 80, likely triggered the recent pullback after ADA hit its highest level since March. However, as the Stochastic moves back into the healthy 50 to 80 range near $0.8900 key support, buyers remain hopeful for a rebound.
This highlights the range resistance of $0.9900 and the $1.0000 threshold as immediate upside barriers for the ADA traders, a break of which will shift the market’s attention to the recent multi-month peak of $1.0190. Also acting as a short-term resistance is the March 05 swing high of $1.0270.
Following that, the $1.1000 and $1.1100 might test the Cardano buyers before the key $1.1500–$1.1700 range from late November 2024.
That said, the quote’s continuation of a run-up beyond the $1.1700 could aim for the $1.2000 round figure and $1.2400 upside hurdles before targeting the latest December peak of $1.3200.
Alternatively, ADA’s daily close beneath the $0.8900 would defy the latest bullish breakout and drag it back toward the $0.8400–$0.8300 support zone from December.
Following that, the 50-day and 200-day SMAs, respectively near $0.7650 and $0.7200, will be the Cardano buyer’s last defense before giving control to the bears.
Cardano Price: Four-Hour Chart Appears More Bullish
Cardano’s four-hour chart appears comparatively more bullish as the Stochastic bounces off the oversold territory of 20.00 as the prices rebound from the 50-bar SMA.
Still, a week-long descending resistance line guards the immediate ADA upside near $0.9700 before confronting a two-month bullish channel’s top, close to $1.0750 at the latest.
Should Cardano buyers keep the reins past $1.0750, the daily chart resistance levels will be in the spotlight.
Alternatively, a downside break of the 50-bar SMA support of $0.9000 can drag prices to the $0.8900 support confluence discussed on the daily chart.
Below that, a fortnight-old support line of $0.8300 and the 200-bar SMA of $0.8213 will test the bears ahead of the aforementioned bullish channel’s bottom of $0.7130 and a five-week-old horizontal support area surrounding $0.6890-$0.6840.
Conclusion
Cardano’s five-day consolidation hasn’t disappointed buyers, as the price holds above an important support confluence. This joins bullish momentum indicators to signal a possible short-term ADA recovery while keeping the broader bullish outlook intact.
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