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Cardano (ADA) Decline: Temporary Correction or the Beginning of a Deeper Decline?

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Cardano (ADA) Decline: Temporary Correction or the Beginning of a Deeper Decline?

Jakarta, Pintu News – In recent days, Cardano (ADA) has experienced a significant rise, breaking through the $0.750 level and surpassing resistance at $0.7750 and $0.80. However, after peaking at $0.8634, ADA experienced a correction and is now below $0.80 and the 100-hour simple moving average. The big question that arises is whether this decline is just a temporary correction or the beginning of a deeper decline.

Recent Technical Analysis

After reaching a new high at $0.8634, Cardano (ADA) has declined and is now trading below $0.80. There is a breakdown of the bullish trend line that previously supported the price at $0.820 on the hourly chart of the ADA/USD pair. Currently, Cardano is trying to find support in the $0.7750 zone, but if it fails, there is potential for further declines.

A drop below the $0.7750 level could take Cardano to the next support at $0.740. If this level doesn’t hold either, Cardano might test $0.7050. The hourly MACD indicator shows a loss of momentum in the bullish zone, while the hourly RSI (Relative Strength Index) is below 50, indicating bearish strength.

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Price Recovery Potential

Despite facing selling pressure, there is a chance for Cardano to recover if it can break back above $0.80. The first resistance lies at $0.8180, followed by $0.8450. A close above $0.8450 could trigger a strong rally with the next target towards $0.880 and the potential to reach $0.90 in the short term.

This rise will depend on Cardano’s ability to maintain momentum and attract buyer interest above key levels. Constant monitoring of technical indicators such as MACD and RSI will provide further insight into potential price movements.

Implications for Investors

Cardano investors and traders should pay attention to key support and resistance levels to make informed investment decisions. With the existing volatility, it is important to consider both rising and falling scenarios. Observing technical indicators and market reactions to these price levels will be crucial in determining Cardano’s short-term direction.

In current market conditions, a prudent strategy may involve setting tight stop-losses and monitoring price movements in real-time to avoid large losses. Portfolio diversification with other assets such as Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) can also help reduce risk.

Conclusion

Although Cardano (ADA) has experienced a recent decline, it is still too early to determine whether this is the beginning of a long-term bearish trend or just a temporary correction. Investors should remain vigilant and update their strategies according to market developments. Following technical analysis and paying attention to key levels will help in navigating through this volatility.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

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