Cardano is showing mild resilience amid a broader crypto market selloff as ADA sets sail to reclaim the $0.73 price mark, riding on its advances in its ecosystem.
A potential morning star pattern is forming for Cardano (ADA), suggesting an increased chance of a bounce back to $0.73. This has raised questions about the potential of a new bullish rally in the coming weeks.Â
Cardano Experience Market Flip
ADA is trading at $0.6722, following a 0.77% increase in the last 24 hours per CoinMarketCap data. It had recently dipped to $0.6296 but is holding steady at $0.60. Besides the morning star pattern, Cardano recorded an intraday recovery, giving more credence to its potential to retest the $0.73 resistance level.Â
The daily charts suggest that the coin’s price trend has failed to overcome the 200-day EMA. This resulted in three consecutive bearish candles and a 10% decline over the past weekend.Â
However, things took a new bullish turn when a Doji candle formed. This gives the impression that there are lower price reactions from the $0.60 mark. It also coincides with the 50% Fibonacci retracement, highlighting a key support area for Cardano.
The intraday recovery and the potential formation of a morning star pattern extend this bullish momentum. Some analysts are critically looking at the possibility of ADA even breaking out towards the $0.92 mark, triggered by an initial push to hit $0.73.Â
What Could Go Wrong With Cardano?
Conversely, popular crypto analyst Ali Martinez recently highlighted Cardano’s pullback, calling it a potential precursor to a major breakdown.Â
He is focused on the critical support zone between $0.70 and $0.80, noting that it is crucial. Judging by the recent breakdown, Martinez believes that there is a significant downside risk should Cardano fail to reclaim the support level soon.Â
According to previous declines spotted from this crucial support area, the resulting correction usually extends to the $0.31 to $0.24 range. Still, Cadano may defy the odds and record outstanding market performances as it did in 2024. Messari confirmed that the ecosystem experienced all-around growth last year, including major gains in its price.
Cardano’s daily transactions and Decentralized Finance (DeFi) Total Value Locked (TVL) also saw massive growth. Cardano made such progress amid the broader crypto market bull run.
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