cardano price analysis
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Cardano Price Analysis & Prediction (May 23rd) – ADA Aims to Bounce Off This Boundary After Brief Consolidation, Heading Where?

Cardano’s price remained intact in a channel pattern after shedding a lot of loss in five months. It recently found support on the channel’s lower boundary after consolidating for a week. Recovery lies ahead!

The much-anticipated correction to the $0.35 level finally occurred last week after a three-week decline. At the same time, that price level coincides with the lower boundary of the ascending channel forming since late last year. 

After testing that area, it entered a brief consolidation phase and currently attempt to push out of the phase. The $0.376 level seems to be posing a threat to the bulls for the past hours. If they overcome that level, we can expect a quick push toward the $0.4 psychological resistance in no time.

From a technical standpoint, the upper boundary of the channel remains the main target for the buying. The only condition for selling right now would be a breakdown of the channel, which could cause serious pain in the market.

If such a scenario occurs, ADA is likely to drop to as low as $0.28 before it finds a bottom. However, such a setup does not look realistic at the moment. The daily volume is still in the fall. We can expect a significant price increase as soon as it begins to rise.

Cardano’s Key Levels to Watch

cardano price analysis prediction
Source: Tradingview

ADA looks ready for an increase. If the price surpasses the mentioned psychological resistance, the next level to pay attention to is $0.42 and $0.44, followed by $0.463 and $0.482 around the upper boundary of the channel.

The closest support level right now is $0.357, which sits on the lower boundary of the channel. Below the channel, the nearest support levels to keep in mind are $0.34, $0.323 and $0.30.

Key Resistance Levels: $0.376, $0.40, $0.42

Key Support Levels: $0.357, $0.34, $0.323

  • Spot Price: $0.375
  • Trend: Bearish
  • Volatility: Low

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

Image Source: niphonsubsri/123RF // Image Effects by Colorcinch

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