ADA Price Analysis: New Supply Warns Sharp Correction In ADA!

The post ADA Price Analysis: New Supply Warns Sharp Correction In ADA! appeared first on Coinpedia Fintech News

Following the sharp recovery in October, the ADA price shoots past the 200-day EMA and showcases a quick rise of 31% over the last 15 days. However, with a short pullback in the market, Cardano hits a supply wall, leading to an intraday fall. 

Nevertheless, with a 28% year-to-date growth and ongoing recovery rally, the Cardano price predictions tease a bull run in 2023. 

Crossing the dynamic resistance of the downtrend EMAs, the ADA price skyrockets to the $0.325 mark. However, despite the sharp recovery, the buyers failed to overcome the excessive supply at the overhead ceiling of $0.325 mark. 

Nevertheless, the ongoing recovery managed to reclaim the psychological mark of $0.30 mark with a symmetrical triangle breakout. Moreover, the pullback from $0.325 comes as a retest of the 200-day EMA breakout. 

Currently, the ADA price trades at $0.318 with an intraday fall of 1.55%, leading to a bearish candle. Further, the trading volume has been on a decline in the past few days, projecting a weakness in short-term momentum.

Technical indicators:

MACD indicator: The rising trend in the MACD and signal lines continue to move on a positive trajectory with growing histograms. 

EMA: The rising 50-day EMA comes closer to the 200-day EMA and increases the golden crossover possibility. 

Will ADA Price Reach $0.40?

Despite the short-term pullback and increased supply, the ADA price may soon find fresh momentum to exceed the $0.325 resistance level. Moreover, a market-wide relief can trigger an early bull run in Cardano to surpass overhead resistance.

If the ADA price rises above the $0.325 mark, the breakout rally can reach $0.40 after surpassing $0.35. On the flip side, a sharp reversal from $0.325 can retest the $0.30 mark.