Cardano (ADA) price has surprised the market by gaining more than 11% over the past week, despite the fact that the environment continues to struggle with the recent controversy surrounding its talks on the economy and leadership. Although the dispute has created uncertainty among investors, it has done little to prevent buyers from piling up the brand after its sharp decline.
However, short-term recovery only tells part of the story. Despite the recent explosion, the price reached $ 0.174 with a small profit of 2% in the last 24 hours; ADA remains down about 35% over the past month and has lost a significant portion of its value over the past year. The recent rally has brought the indicator back to $0.17, but it is still below the very important $0.235-$0.240 area that previously served as a major support area.
So the upcoming episodes can be positive. If the bulls are able to recover this important resistance, ADA could recoup a large part of its monthly losses. But if the rally settles below them, the recent pullback could be another reprieve in the midst of a major downtrend.
ADA Price Tests High Resistance at $0.24
Buyers entered aggressively when the price of ADA fell sharply from $ 0.24 to a low price of about $ 0.16, which was accompanied by a rise in sales. Since then, the price has been trading within a relatively small upward trend, creating high and low lows. The rally is intensifying as sentiment grows, with buyers trying to regain control after weeks of heavy selling.
The RSI has rebounded from oversold areas but remains below the 50 level, which indicates that buying is improving but has not yet turned in favor of the bulls. At the moment, the MACD histogram is becoming lower, which indicates that the bearish trend is ending, although a strong consolidation has not yet occurred. In the meantime, short-term trends support further recovery as long as ADA is still in an upward trajectory. But the real confirmation will come only if the buyers push the price above the $0.235-$0.240 resistance zone, which will open the door to a big recovery and help the indicator recover a large part of its recent monthly losses.
What’s Next for the ADA Cost Race?
ADA’s recovery is encouraging, but cattle still have a major challenge to overcome. The area of $0.235-$0.240, which previously served as support, is now a major resistance that will determine the next move of the indicator.
A definite break above this level would lead to a rally to $0.26-$0.28 by the end of this month and change the outlook for the end of the quarter. However, a failure to recover from this zone could lead to further selling pressure, with $0.16-$0.15 emerging as the next support zone.
For entrepreneurs, verification is more important than expectation. The recovery has begun, but a retracement of $0.235-$0.240 will be a sign that the ADA is going through a useful rally and a further reversal.
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