In the face of a recent 10% slide, Cardano (ADA) has reached a crucial support level, signalling a potential local bottom and offering day traders an enticing opportunity. With bears cooling off, the so-called “Ethereum-killer” could be on the brink of a quick recovery rally that might propel its price to $0.400.
The crypto enthusiast Acidjuh shared predictions on Cardano’s bullish sentiment:
ADA Price Prediction: Bulls Target Shifts to $0.400 on Network Sentiment https://t.co/JHF3VPWN7w #Cardano $ADA
— Acidjuh © (@acidjuh) January 15, 2023
Over the past two weeks, the broader cryptocurrency market has experienced a downturn, and Cardano has not been immune to the bearish pressure. However, on-chain metrics indicated that ADA is nearing a critical support level, providing hope for optimistic traders.
Should the bullish thesis hold, ADA’s recovery rally could be imminent. As the bears retreat and buyers regain control, the price of Cardano could surge towards the $0.400 mark, presenting a potentially profitable opportunity for day traders seeking short-term gains.
The technical outlook for ADA/USD is looking bullish. According to the Moving Averages, ADA/USD is currently in a strong buy position with ten indicators for Buy and 2 for Sell. Likewise, the Technical Indicators indicate a strong buy, with nine indicators for buy and 0 for sell. Cardano could soon begin its recovery rally, offering day traders an attractive opportunity.
ADA/USD reached a critical support level at $0.300, and the Relative Strength Index (RSI) indicates buyers are regaining market control. If buyers push the price above its current resistance level of $0.320, it could set up an extended recovery rally that could take ADA to $0.400 or higher in the short term. As always, traders should exercise caution when entering any position and use stop-losses to manage risk.
In conclusion, the technical picture for ADA/USD suggests a potential recovery rally could be imminent. With bears cooling off and buyers regaining control, now could be an excellent time for day traders to enter into a position in Cardano with the expectation of short-term profits.
Disclaimer: This article is not financial advice. Cryptocurrency investments carry inherent risks, and readers are encouraged to research and consult with financial professionals before making investment decisions.
