Cardano Price Jumps 9% Today; Will The Recovery Rally Resume?

After an explosive rally in January, the Cardano coin witnessed a minor correction as a method to replenish the exhausted bullish momentum. As a result, the coin price lost 12% since last week and retested $0.357 support. However, the ADA price experienced significant inflow today and tries to undermine the correction loss; is this the beginning of a bullish recovery rally?

Key Points: 

• A bullish engulfing candle at $0.357 support indicates a higher possibility for the Cardano coin price to challenge $0.4
• The rising ADA price managed to reclaim the 20-day EAM 
• The intraday trading volume in the ADA coin is $451 Million, indicating an 18% gain.

Source- Tradingview

The last three months’ price action in Cardano coin price showed a V-shaped recovery. This term is often used to describe a quick bounce back of an asset’s market value as the market sentiment recuperates.

However, with the recent sell-off in the crypto market, the ADA price witnessed a minor correction and plunged to local support of $0.355. Anyhow, after a rapid correction, this correction was beneficial for ADA holders as it stabilized the buying pressure and checked the coin’s stability at a higher price. 

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Over the last five, the daily chart showed lower price rejection at $0.355 mark, accentuating the buyers who are defending the newly reclaimed footing. Amid the recent release of January CPI of 6.4%, the crypto market reacted positively and pushed a majority of major coins higher.

With sustained buying, the bulls may dive 4% higher and challenge the last swing higher of $0.4.

Technical Indicator. 

Relative strength index: the daily RSI slope jumps above the midline, indicating the positive sentiment in returning to the Cardano coin

EMA’s: A bullish crossover between the 50-and-100-day EMA may bring more buying orders in the market.

Cardano coin price intraday levels

• Spot price: $0.38
• Trend: Bullish
• Volatility: Medium
• Resistance level- $0.39 and $0.465
• Support level- $0.378 and $0.3545.