Cardano (ADA) Faces Correction Towards Its Support of $0.7

Cardano is registering a moderate correction for the past few weeks. Still, it holds the possibility of a potential recovery above $1.2. The ADA coin shows bearishness with a moderate correction in price, and once the price reaches the support of $0.7, a turnaround can be expected. 

The daily chart shows that once the ADA price closes above the resistance of $1.2, a strong bullish momentum can be expected, however, if the price of Cardano closes below the support line, a robust downtrend momentum can be expected.The RSI indicator is at 36 on the above chart, which may lead toward the oversold zone after which the ADA coin price may crack towards its highs. The MACD line is below the support line from the past few days and the coin has already declined significantly. The price is moving somewhere around the lower bands however it hasn’t yet touched the lower bands after which the Cardano price can be expected to mark a trend reversal as per the ADA price prediction.

Cardano‘s price is on the path to revisiting its low of 0.747 which is also the next near-term support. The zone of $0.75 to $0.70 is key for the future direction of the ADA coin. If we see buying pressure building up near this area, a trend reversal would be an interesting opportunity and could generate good returns. 

Although if the current trend is resumed, the price of Cardano will push lower due to a lack of demand and that could be highly unfavorable for investors who are holding the coin. A negative push in ADA price and a break of the near-term support area would open the script to an accelerated bearish move.