ADA’s break above this level can invalidate Cardano’s bearish propensity

ambcrypto.com:

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

Cardano’s [ADA] prior month’s recovery gave the alt enough leeway to accommodate the recent market-wide liquidations. The immediate drawdowns have pulled ADA below its EMA ribbons over the last few days.

The buyers have found renewed pressure at the $0.43-$0.45 support range over the past day. Thus, ADA was up by 10.45% in the last 24 hours. At press time, ADA was trading at $0.5148.

ADA 4-hour Chart

Source: TradingView, ADA/USDT

The altcoin’s previous bull rally traversed with the support of its EMA ribbons. ADA registered a nearly 47% ROI (from 29 May low to 8 June high).

With the $0.66-level constricting bullish rallies for over a month, and expected reversal from this level inflicted a 35% drop toward ADA’s monthly low on 13 June.

Post a morning star candlestick structure, the buyers propelled an uptick in the 24-hour buying volumes by over 57% at press time. As a result, over the last few hours, the alt broke out of its descending broadening wedge setup on the 4-hour timeframe.

Also, the 10-week trendline support (yellow, dashed) alongside the Point of Control (POC, red) opened doorways for a bullish counter.

While the broader trend was still under bearish control, ADA could face a barrier in the $0.5-$0.53 range. A strong selling move from this range can pull ADA to retest the $0.48-zone.

In case of a near-term bearish invalidation, the 55 EMA and the 50% Fibonacci in the $0.55-$0.57 range could curb the buying pressure.

Rationale

Source: TradingView, ADA/USDT

The Relative Strength Index (RSI) took a relatively neutral stance while aiming to test its equilibrium. Its recent growth has marked