Cardano is experiencing a severe breakdown at the support of around 0.50, but it has the potential to rebound with bullishness as buyers build up at the major demand areas.
The price of Cardano (ADA) experienced substantial bearish pressure in the recent past, as it dropped in the key positions but retained essential support close to the area of 0.50.
Source: CoinMarketCap community posts
As per the CoinMarketCap community posts, the cryptocurrency is trading at and around $0.53 and is clustering in a falling wedge formation just above this demand area.
The price trend indicates the possibility of rebound efforts by bulls who can defend this price and re-take the resistance zone of $0.60 to 0.62.
Signs prove the fight, but do not exclude recovery. The Relative Strength Index (RSI) of 27.26 indicates no immediate reversal of the situation, and the Moving Average Convergence Divergence (MACD) is bearish, which means that the market is moving down.
The price of ADA is approximately 28 percent under its 200-day exponential moving average (EMA) around $0.75, indicating the long-term weakness and spurred stop-loss and algorithmic selling.
However, there is a high demand level at 0.50 that has drawn the attention of buyers, and it has been bought in large quantities by large holders or whales who have bought approximately 50 million ADA in the recent past.
This buildup is usually followed by an upward movement of the prices, and the hope of a comeback.
The market remains on high alert above $0.57 as a necessary indicator of relief in the short term and the chance of a change in momentum.
Buyers Position to Defend Key Support Level
Recently, the Cardano price has been undergoing difficult times under the price of $0.49, increasing the pressure of bears and increasing the risk of further correction.
Nevertheless, there have been signs of buyers protecting the $0.50 mark, which have kept the door open to a rebound.
Technical analysis indicates that ADA is trading between the support level of 0.49 and the dropping level of 0.60, which may cause an explosion in volatility upon a breakout event occurring.
Such tight consolidation will be an indication of possible accumulation and momentum building towards a recovery period.
Source CMC
Provided buyers maintain the support, profitability to resistance at $0.59 and $0.66 may occur. Nevertheless, failure to retain support at $0.49 will open it to losses of between ADA and $0.45 or even $0.41.
The success of ADA will be dependent on macro conditions, the stability of Bitcoin, and the general mood of the market.
Whale Activity and Network Developments Fuel Optimism
Although the network is weak in the short term, the network fundamentals and the presence of whales provide long-term hope to Cardano.
This recent acquisition by major holders is indicative of trust in the value proposition of ADA. In addition, continuous improvements such as the Hydra scaling solution and positive ecosystem growth may make ADA more attractive.
Other analysts predict that there may be a possible turnaround that may bring the prices to the level of around one in a few months, in case the momentum of buying continues.
The ongoing bullish narrative is still backed by the active development roadmap and community interaction of Cardano in the face of the existing volatility.
The post Cardano ADA News: Cardano Faces Breakdown but Buyers Eye Rebound at $0.50 appeared first on Live Bitcoin News.