Cardano (ADA) is showing bullish signs above $0.320. The current price action points to a possible bottom and a rise towards $0.675 or even $0.900.
Is Cardano Price at the Bottom?
After bad declines in 2021 and 2022, ADA price settled below the $0.500 pivot. Cardano even traded below the $0.300 level before the bulls took a stance. A new multi-month low was formed near $0.2205 before the price started a recovery wave.
Bitcoin and Ethereum have regained strength over the past few weeks, but ADA has failed to capitalize and has appreciated in nominal terms. Now, a few positive signs are emerging on the weekly chart. The price broke a major bearish trend line with resistance near $0.315.
ADA Price Analysis
ADA price settled above the $0.320 resistance zone and the 50-week simple moving average (blue). It looks like the price is making a possible mid-term bottom.
If the price remains above the 50-week simple moving average (blue), a steady increase is possible. The first major resistance on the upside is near the $0.675 level. The next major resistance is near $0.899, the 23.6% Fib retracement level of the last significant decline from the $3.09 high to $0.220 low.
A weekly close above the $0.900 resistance could confirm the $0.220 bottom. In the stated case, Cardano is likely to rally towards the $1.50 level or the 50% Fib retracement level of the last significant decline from the $3.09 high to $0.220 low in the coming months.
ADA price could correct lower if there is no move above $0.400 or $0.420. An immediate support is near the $0.355 level. The first major support is near the same trend line and the 50-week simple moving average (blue) at $0.320.
Cardano closing below the $0.320 support could trigger bearish moves. The next major support is near the $0.300 level, below which there is a risk of a decline towards $0.268. Further losses are likely to increase selling pressure. This could also cost $0.220.
Overall, ADA is signaling a possible bottom at $0.220. It is possible that the bulls will continue to move. In this case, Cardano is likely to rise towards the $0.650 or $0.900 level. Conversely, the price may be lower. In this case, it is possible for it to revisit the $0.320 support zone.