Amid a general gloomy and mixed feeling in the cryptocurrency market, the price of Cardano (ADA) is trying to remain above the support levels, despite the fact that the price has been on a downward spiral for the last week.
With Cardano price now trading at $0.77, it has moved upward by 0.14 percent in the past 24 hours but has declined by 11 percent over the previous seven days, with the ninth-largest asset by market capitalization reaching levels this low in February 2021.
After testing the same support point that preceded a 65 percent bull run in March 2022, the price of ADA has begun to bounce. On Feb. 24, ADA/USD saw a bullish rejection when its price fell below $0.75, following a brief period of sideways consolidation. It eventually broke out of the flat price range, surging to $1.24 on March 26, indicating strong buying interest near the $0.75 mark.
ADA’s three-day relative strength index (RSI) was also nearing its oversold threshold of 30 in the March 2022 fractal. The momentum indicator has returned to approximately the same level as ADA consolidates inside the flat zone.
Cardano expects a significant rebound from $0.75 in May 2022 as a result of this fractal, with an interim upside target of $1, which aligns with the upper trendline of ADA’s current falling channel pattern.
Are more losses Incoming?
Cardano is expected to continue falling in the next three-four months, according to The Digital Trend, a pseudonymous analyst at Seeking Alpha. This is mostly owing to its correlation with the rest of the crypto market, which risks correction due to macroeconomic causes.
Nonetheless, the analyst predicted that the price of ADA would rise to a new all-time high in the days leading up to “Basho,” Cardano’s next technical upgrade, which is expected to improve scalability.