Cardano Price Analysis: ADA Coin Is Up By 10% From An Important Support; Has The Recovery Phase Started?

The ADA coin has been in a bearish mood for more than two months now. In this fall, the price has lost half of its value and dropped to the 0.786 FIB level. However, today it was up by 10% where this green candle has engulfed the last six days of trading activity. Watch out for these important technical levels.

Key technical points:

• The ADA daily RSI line has recovered from the oversold territory 
• The 20-day EMA provides strong resistance to ADA price
• The intraday trading volume in the ADA coin is $29.56 Million, indicating a 68.7% hike.

Source- ADA/USD chart by Tradingview

As mentioned in my previous article on ADA/USD, the correction phase or be more precise, a short-term downtrend in ADA coin plunged to the 0.786 Fibonacci retracement level. For almost a week, the price was trying to sustain above this level, and today it showed a bullish engulfing candle of around 10%, maybe indicating the first sign of bullish reversal.

The crucial EMA levels(20, 50, 100, and 200) indicate this coin’s bearish trend. Moreover, the price is also obtaining dynamic resistance from the 20 EMA line. Furthermore, the Relative Strength Index(44) showed a decent recovery from the oversold territory.

ADA/USD 4-hour Time Frame Chart

Source- ADA/USD chart by Tradingview

The ADA coin price bounced back from the crucial support of $1.5. After reclaiming a dynamic resistance of 50 EMA, the price reestablished the nearest horizontal resistance of $1.7. However, the ADA traders should wait for the price to break this overhead resistance to get an extra edge in a long position. 

Moreover, the MACD indicators’ lines are on the verge of crossing above the neutral zone(0.00), which should add more confirmation for a rally.