Cardano's Potential Price Recovery: Key Indicators to Watch

Cardano Faces Challenges but Indicators Signal Potential Recovery

Cardano has experienced significant pressure, with its price declining nearly 30% over the past month. Currently, ADA is testing the lower support of its descending wedge—a pattern that often suggests a bullish reversal unless breached.

Key Indicators Pointing to a Rebound

Amidst this downturn, three critical indicators suggest a potential price recovery for Cardano.

Signs of Buyer Strength at Critical Support

Two crucial metrics, the Chaikin Money Flow (CMF) and On-Balance Volume (OBV), have shown positive shifts. The CMF, which assesses money flow based on price and volume, had been declining but recently formed a higher high, indicating stronger inflows despite a weaker price. Meanwhile, OBV broke its downward trend as ADA approached the $0.45 mark, signaling renewed buyer interest.

Holder Behavior: Confidence Amid Decline

The Spent Coins Age Band reveals the conviction of long-term holders. On November 1, ADA saw peak spent coin activity, but by November 19, this activity had decreased by 27%, even as prices fell. This suggests fewer coins were moved during the correction, reinforcing the support level.

Critical Support Levels for Cardano

Cardano's price is testing its crucial support at $0.45–$0.44. Holding this level could trigger a rebound, with a significant move above $0.50–$0.52 indicating initial strength. A full recovery requires surpassing $0.60, potentially leading to a $0.69 retest and a possible breakout.

Should support fail, a decline below $0.44 could lead to further drops, challenging the bullish outlook.