- Cardano (ADA) is forming a morning star pattern, signaling a potential rebound to $0.73 amid strong support at $0.60.
- However, failure to sustain momentum could trigger a decline toward $0.53 or lower.
Cardano (ADA) is showing signs of a potential bullish turnaround as it forms a morning star pattern, suggesting a possible price rebound toward $0.73. Despite the broader uncertainty in the cryptocurrency market, Cardano has remained relatively stable, trading around $0.60 after recently dipping from $0.6296. Currently, ADA is priced at $0.6724, with the morning star formation providing hope for an impending bounce.
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Cardano’s Technical Analysis: Will $0.73 Be Reclaimed?
On the daily chart, Cardano recently faced rejection at the 200-day Exponential Moving Average (EMA), leading to three consecutive bearish candles and a 10% decline over the past weekend. However, the market quickly shifted to a more bullish sentiment after the formation of a Doji candle near the $0.60 support level. This coincides with the 50% Fibonacci retracement, reinforcing the significance of this price point as a strong support zone.
Cardano’s recovery is gaining momentum as it forms a bullish candle, signaling the potential completion of a morning star pattern. This pattern is widely regarded as a sign of reversal, and if it holds, Cardano is likely to retest the critical resistance at $0.73, marked by the 61.80% Fibonacci retracement level. Additionally, the 200-day EMA line is moving closer to this resistance zone, making the $0.73 level even more crucial for ADA’s short-term price action.
However, caution remains necessary. Amid the overall bearish sentiment, the possibility of a “death crossover” between the 50-day and 200-day EMA lines could signal a bearish trend reversal, potentially triggering further selling pressure on Cardano.
Analyst Warns of Potential Downside Risk
Despite the bullish signals, analyst Ali Martinez has raised concerns about a potential downside risk for Cardano. Martinez points out the critical support zone between $0.70 and $0.80 as vital for ADA’s price stability. If Cardano fails to maintain this support level, a deeper correction could follow, potentially bringing prices down to the $0.31 to $0.24 range.
Cardano Price Targets: A Mixed Outlook
Looking at the recent price action, the lower price rejection near $0.60 suggests a potential upside of 8.52%, with the next target at $0.73. Should Cardano break above this level, the next resistance zone lies at the 78.60% Fibonacci retracement level, around $0.93.
On the downside, if Cardano fails to hold above the $0.60 support, the price could fall toward the local trendline near $0.53, presenting a downside risk of nearly 20%. Traders and investors should remain cautious and monitor key levels to determine if Cardano can establish a bullish recovery or face further setbacks.
