Cardano (ADA) Price Drops Under $0.80: Is Post-Retest Rally in Danger?
With the liquidations resurging in the crypto market, Cardano (ADA) price trend faces another incoming supply wave. Failing to uphold dominance at $0.80, ADA price falls back. Will this result in a second crash to $0.68 this month?
The rising fluctuations in the crypto market clash with Bitcoin and the $96K mark, increasing the bearish influence over the crypto market. Amid the rising liquidations, Cardano ADA$0.77 faces an intraday hit of 3.87% pullback.
With the quick reversal, Cardano is back under $0.80 and is now trading at a market price of $0.777. Will this intraday pullback nullify the chances of a post-retest reversal in Cardano? Let’s find out.
Cardano Price Analysis Puts Double Retest Possibility
In the daily chart, the Cardano price trend reveals a bullish reversal from the $0.68 support level. The recovery run overcomes the local resistance trendline and marks a bullish breakout of a falling wedge pattern.
With the short-term reversal topping out above $0.80, Cardano retests the broken resistance trendline. Following the retest, Cardano created a bullish engulfing candle with a 4.8% jump on Monday.
This marked a bullish start to the week and created a morning star pattern, increasing the chances of a post-retest reversal. However, spoiling the bullish plans, Cardano registers a pullback of more than 3%.
This breaks under the 23.6% Fibonacci level at $0.78, casting various doubts over the chances of a post-retest reversal.
Moreover, the rejection near $0.80 suggests strong overhead resistance, which could limit short-term upside potential. If buyers fail to regain momentum soon, the bearish grip might tighten further.
Nevertheless, the technical indicators maintain an optimistic viewpoint. The MACD and signal line maintain a positive alignment, and the daily RSI line stays near the halfway level.
