Cardano (ADA) found itself in the midst of a terrible freefall amidst the recent altcoin market collapse. The popular altcoin’s price retreated by 41.6%, a stark plunge from its peak of $0.379 to a monthly low of $0.22. However, following this pullback, buyers rapidly entered the market, propelling ADA above the support level of $0.266. But is the ADA price ready for a new recovery? Let’s take a closer look.
Although Cardano’s price broke the support at $0.24 on June 10, marking a significant pullback, buyers quickly acted, buying the dip and pushing the price above $0.266. The altcoin‘s price has been moving sideways between $0.3 and $0.266 for the past three days. The indecisive candles within this range indicate prevailing uncertainty among market participants.
As a result of the buying pressure stemming from ADA’s significantly discounted value after the aggressive decline, a temporary recovery may be expected. Therefore, there could be a minor relief rally in the altcoin’s price, potentially reaching levels of $0.3 or even $0.324.
While the overall crypto market remains under selling pressure, the probability of Cardano‘s price rallying above $0.3 seems quite low. However, a temporary bounce between the levels of $0.3 and $0.324 might be expected to test the strength of the resistances ahead after its recent decline.
The Relative Strength Index (RSI), moving in the oversold territory, indicates potential buying pressure that could lead it out of the oversold zone and reverse this trend. In this respect, the RSI suggests that ADA might see some recovery. The 20-day Exponential Moving Average (EMA) at the $0.324 level confirms this level as a strong resistance ahead for the altcoin.