Bears prevail in Cardano but could a retest of the $0.30 level confirm a long-term bull rally?

The price of Cardano has been declining for more than two months, demonstrating seller dominance. However, the most recent development indicates that a brief uptrend may be on the horizon. 

ADA has produced three separate lows in the past month and is currently trading at $0.245. However, the Awesome Oscillator (AO) and Relative Strength Index (RSI) have generated greater lows. Bullish divergence formation is beginning in Cardano which frequently causes the underlying asset to rally. 

This sudden breakout may cause the price of Cardano to surge 18% and cross the $0.289 barrier. In such circumstances, ADA might set the middle of the aforementioned range at $0.306, resulting in a gain of 25% overall.

Cardano 5-day price chart. Source: Trading View.

Cardano’s price may return to the 200-day Exponential Moving Average (EMA) around $0.314 under very favorable circumstances and with the patience of ADA holders. A quick gain of 28% would result from this action. 

Although the price of Cardano is expected to rise, a continuation of the decline would undermine the positive divergence. The bullish argument would be refuted by a clear collapse of the support at $0.231 creating a lower low. In such a scenario, the price of Cardano may fall 7% and retest the lower support level currently situated at $0.214.

Analyst Benjamin Cowen seemed to confirm a bearish outlook for Cardano as per his tweet.

Cardano has had an astounding record of more than five years of continuous uptime. The network has managed 2,174 days of uninterrupted operation which translates to nearly six years without any downtime. Cardano’s trustworthiness is echoed by its excellent operational uptime, which is unmatched by even the largest service providers, making it a favorite among the developer community. 

According to on-chain analytics firm Santiment, Cardano was among the top 10 most developed chains over the past month. Cardano was in third place and boasted an impressive 3871 GitHub commits. Upcoming upgrades on Cardano’s roadmap include  Mithril, a node syncing efficiency improvement, and Midnight, a privacy-focused sidechain.

Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.

Author: Puskar Pande

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