Recent analysis suggests Cardano (ADA) might be gearing up for a new upside following a week-long correction that saw its value drop nearly 10%.
Price Correction Triggers Potential Setup
Between June 10 and June 17, ADA fell from $0.73 to a low around $0.60, marking a 9.6% decline. However, price movements around the $0.63 level indicate potential stabilization. As of now, ADA trades approximately at $0.6328.
On the 4-hour ADA/USDT chart, analysts have identified an internal change of character (I-CHoCH), which may signal that bearish momentum is fading.
Technical Indicators Support a Bounce
Bullish divergence on the MACD further supports the case for reversal. While price action recorded lower lows, the MACD histogram and signal line were moving higher, which is a classic sign that selling pressure is waning.
The $0.63–$0.64 area, previously a resistance zone, is now acting as key support. Cardano rebounded from a low of $0.61 on June 14 to reclaim the $0.65 level.
Strategy: Eyes on Support, Targeting $0.70
The analyst advises two entry strategies. Aggressive traders might consider current levels for a position, while more cautious participants could wait for a retracement into the $0.63–$0.64 range. A confirmed bounce there would improve risk-reward conditions.
If momentum continues, ADA may challenge resistance at $0.67 and possibly extend to $0.70 — a 10.6% upside from current levels.
However, the setup hinges on holding above $0.6200. A close below that threshold would nullify the bullish structure, prompting a reassessment of market direction.
In summary, Cardano (ADA) appears to be on the verge of a trend change following the recent correction. If key support levels hold, this could pave the way for new gains.
