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October 31, 2023

Cardano (ADA) Recovery Rally: Potential for Further Gains Despite Overhead Supply Pressure

Natasha Fernandez
Written byNatasha FernandezWriter
Researched byNikos PapadopoulosResearcher

Introduction

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.

Cardano (ADA) Recovery Rally: Potential for Further Gains Despite Overhead Supply Pressure

Overhead Supply Pressure

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.

Anticipated Retracement

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.

Price Target

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.

Conclusion

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%.

About the author
Natasha Fernandez
Natasha Fernandez
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Natasha "CryptoQueen" Fernandez bridges the gap between blockchain buzz and casino charisma. From New Zealand's serene landscapes to the volatile world of crypto, she's making waves in the online gaming sphere. With CryptoCasinoRank, she paints a future where chips meet chains seamlessly.

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