Crypto CasinosNewsCardano (ADA) Recovery Rally: Potential for Further Gains Despite Overhead Supply Pressure
Cardano (ADA) has shown strong performance in the recent recovery rally, surging by approximately 20% from a solid support level of $0.24 to its current trading price of $0.286. This upward movement also coincides with the completion of a bullish double-bottom pattern, indicating the potential for further gains.
Despite the positive momentum, the ADA price faces overhead supply pressure, which suggests the possibility of a minor pullback before the next leap. The $0.3 level, which aligns with a long-standing resistance, indicates a high supply zone for traders.
The intraday trading volume for Cardano is $207 million, indicating a 30% loss. On October 23rd, the price broke through the neckline resistance of the double bottom pattern, signaling a sustainable recovery. However, it struggled to sustain levels above $0.294, likely due to Bitcoin's struggle to break the $35,000 barrier. As a result, the ADA price has experienced multiple rejections around the $0.295 mark, indicating an upcoming retracement.
This anticipated pullback could find support around the $0.28 level, followed by $0.268. If the price stabilizes above these points, it would provide a strong base for the next upward movement.
After the substantial gains over the past two weeks, a minor retracement is expected and healthy for sustaining longer-term bullish momentum. If the ADA price maintains levels above $0.28 or even $0.265, it would be well-positioned to complete the double bottom pattern and target the $0.3 mark. This represents a potential gain of approximately 6% from the current levels.
Cardano's ADA coin has shown resilience in the recent recovery rally and has the potential for further gains. Despite facing overhead supply pressure, the completion of a bullish double-bottom pattern suggests a positive outlook. Traders should monitor the price levels around $0.28 and $0.265 as key support areas. If these levels hold, ADA could target the $0.3 mark, offering a potential gain of approximately 6%.
