Crypto: An imminent return of buyers for Cardano? Technical analysis of October 31, 2024

After a sharp decline, Cardano is entering a consolidation phase. Let's discover together the development prospects for ADA.

Cardano (ADA) price situation

After suffering a 66% decline, Cardano reached a low point at $0.276. As specified in the September 5 analysis, it is at this price level that buying interest in the cryptocurrency has resumed. Since this interest, ADA has entered a period of consolidation, marking resistance at $0.40 and support at $0.30. The price of Cardano thus forms higher and higher lows, suggesting a change in structure to come. In the short term, we observe that the cryptocurrency recently came out of a range period located below the monthly pivot point and is currently retesting the latter.

At the time of writing, Cardano’s price is trading around $0.35. Interestingly, this price level is within the old range, which was around the monthly VWAP and an area of ​​significant value, showing the importance of this level. Although buying interest is notable, the medium-term trend for the cryptocurrency remains bearish, as evidenced by the Dow Theory as well as the 50- and 200-day moving averages. As for Cardano's bullish momentum, it appears subtly supported, as shown by oscillators and the ADA price itself.

The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.

Cardano (ADA) Price Forecast

• If Cardano’s price remains above $0.30, we could consider a target of $0.40. If this resistance is crossed, the cryptocurrency could reach $0.45. If this upward movement continues, a level of $0.50 would become possible, marking an increase of over 40%.

• If Cardano fails to stay above $0.30, a pullback towards $0.28, or even $0.27, could occur. The next key support, in case of a continued decline, is around $0.24, with a risk of a descent towards $0.22, a fall of around 39%.

Conclusion

Cardano is showing signs of recovery with supports supported by increasing buying interest, but the underlying trend remains bearish, confirmed by medium-term technical indicators. The current price zone is therefore key to determining whether a real trend reversal is possible. Thus, it remains essential to carefully monitor price reaction at key levels in order to validate or adjust current forecasts. Finally, remember that these analyzes are based solely on technical criteria, and that the price of cryptocurrencies can evolve quickly depending on other more fundamental factors.