ADA Price Analysis: Cardano Rallies 50% From May 12th Crash, is the Bottom in?

ADA Price Analysis: Cardano Rallies 50% From May 12th Crash, is the Bottom in?

ADA Price Analysis: Cardano Rallies 50% From May 12th Crash, is the Bottom in?

ADA has rallied over 50% since the crash on May 12th, with the price now sitting under a key resistance.

Key Support levels: $0.40 

Key Resistance levels: $0.60, $0.75

In the past few days, ADA entered a relief rally, moving very fast from the key support at $0.40 towards the resistance at $0.60. Buyers have to maintain this momentum if they wish to push prices above $0.60 and towards the next important level at $0.75.

ADA Price Analysis: Cardano Rallies 50% From May 12th Crash, is the Bottom in?
Chart by TradingView

Technical Indicators

Trading Volume: The volume spiked on May 12th but then quickly faded. Nevertheless, the price managed to pull a significant recovery.

RSI: The daily RSI fell under 30 points but has now recovered and is currently trying to make a higher low. If successful, ADA could prepare the stage for a sustained recovery.

MACD: The daily MACD remains bearish, but the histogram is making higher lows. So long this continues, there are reasons to be optimistic in the near term.

ADAUSDT_2022-05-16_16-19-54
Chart by TradingView

Bias

The bias for ADA is neutral. The cryptocurrency has to break the key resistance at $0.60 to turn bullish.

Short-Term Prediction for ADA Price

Cardano suffered a significant correction this year, going from $1.6 (January) to $0.40 (May). At the time of this writing, it seems as if the cryptocurrency has a chance to enter a sustained relief rally. However, it’s important to remain very careful as the market remains very volatile.

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