Cardano Price Prediction: What Lies Ahead if ADA Reclaims $0.62?

Cardano (ADA) has experienced significant losses recently, dropping from $0.61 to $0.532. However, there are indications that a price bounce towards $0.62 could occur if key support levels are maintained. This article explores the potential for recovery and the risks involved in the current market scenario.

Key Takeaways

The liquidity signals and the critical $0.51 support level suggest that despite recent downward pressure, a short-term rebound to $0.62 is plausible.
It's essential to remain adaptable; the current bounce may face resistance at $0.56, or it may break through to reclaim $0.62 as support, depending on demand and Bitcoin's movements.
Cardano (ADA) has struggled in the market lately, falling 12.7% since November 3rd and losing vital support at the $0.6 mark to market pressures.
The recent price decline followed a volatile trading day and a sharp correction in Bitcoin (BTC). Despite signs of accumulation, intense selling pressure overwhelmed the market.

Cardano price prediction- Here's why a price bounce is likely, despite the heavy losses

Analyzing Cardano's Future Price Movements

Cardano 1-week Chart

Source: ADA/USDT on TradingView

Examining the weekly chart reveals that prices have returned to the base of the swing low from June. The rally seen in November 2024 has kept the higher timeframe swing structure (indicated by the dotted orange line) bullish. However, a weekly close below $0.51 could negate any bullish reversal potential.

Cardano 1-day Chart

Source: ADA/USDT on TradingView

On the daily chart, the current market structure is bearish. The On-Balance Volume (OBV) is hovering near the lows recorded during June and July. Both the weekly and daily analyses point to $0.51 being a crucial level for bulls on higher timeframes. A breach of this support could potentially drive ADA down to $0.32.

Cardano 4-hour Chart

Source: ADA/USDT on TradingView

With $0.51 established as a likely rebound point, traders are left wondering how high this potential bounce might reach. The OBV on the 4-hour chart indicates a consistent downtrend. Watch closely for the $0.56 and $0.60 zones, marked in red, as they represent overhead resistance levels. Should the price rise to meet these levels, the downtrend may resume.

Cardano Liquidation Heatmap

Source: CoinGlass

Traders should keep in mind that a retest of any resistance level may not trigger immediate bearish reactions. There is significant liquidity at and slightly above these levels, particularly at $0.62. This liquidity zone is dense with short liquidations and could serve as a short-term price target.

In conclusion, a bounce to $0.62 for ADA, followed by a possible bearish reaction leading back to $0.51 or lower, appears to be a probable scenario for November.

Disclaimer: The information provided is not financial, investment, or trading advice and reflects the writer’s personal opinion.