After a drop of almost 60%, Cardano (ADA) has been recovering well from the last market low. With this, the ADA moves towards the previous top, formed between US$ 2.30 and US$ 2.50. What to expect from this cryptoactive after recovering half of the last big crash?
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Let's start by looking at the weekly chart. We have the ADA far from the large uptrend line (LTA) and with the ZSCORE indicator in a bearish region, while prices continue to be strong on the upside.
We can see in the coming months the ADA correcting a little stronger, and if that happens, support will be the LTA region close to $0.50.
On the daily chart, we see the price fighting with the $1.80 region, where we have strong resistance. If you don't break this region, the price may collapse and confirm the bearish move indicated by the ZSCORE.
If we have a dip, a good stop point is in the $1.30 region.
If the ADA overcomes the $1.80 resistance, it will still have to face the historic high of $2.30. I manage to break the top, the next target for the short term is $3.30.
This is a moment of caution for short and medium term buyers. However, given the strong corrections in recent weeks, we may be in an excellent time for long-term purchases.
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