Cardano was up for a few days of recovery after the crypto market rebounded last weekend. At one point, ADA actually managed to break above the crucial $0.5 price. Many analysts expected the coin to consolidate above that, but it has since moved back below it. So what happens next for ADA? First, here are some notable highlights:
ADA retreated slightly but could still retest $0.5 with improved sentiment
The coin will however need to see an increase in trading volume for this to happen.
Failure to recover $0.5 could push ADA back to $0.380 support in the near term
Data Source: TradingView
Cardano Price Analysis and Prediction
After a massive crypto selloff over the past week, the market started to rally over the weekend. ADA indeed broke above $0.5, a crucial support zone that it had managed to hold for a few weeks. However, the altcoin failed to hold the price there.
Instead, ADA pulled back and is now trading around $0.48. However, there is still a possibility for the coin to jump above $0.5. But based on relatively lower trading volume, ADA might struggle to make that happen. Nonetheless, if the bulls can somehow regain $0.5, ADA will need to break above $0.55 to have any chance of staying above.
In fact, a sustained accumulation here could trigger a run towards $0.63 in the near term. But if the weakness persists, ADA could see a major dip that will push it towards its monthly support around $0.380.
Will ADA bounce back?
Well, ADA has actually bounced back in recent days. The pullback seen over the past 24 hours could be a beep in an otherwise decent run.
But since the sentiment in the market is not yet fully restored, it is likely that ADA faced a major loss of momentum. As such, a more steady decline could occur in the days ahead.