Cardano price shows an interesting outlook as it faces off a resistance confluence. This hurdle will decide which direction ADA will proceed in the near term. Considering the consolidation and the recent recovery rallies, investors can expect a bullish outcome.
Cardano price has tried overcoming the 8-day Exponential Moving Average (EMA) twice over the last week and was rejected both times. After both of these corrections, ADA’s consolidation is again slowly heading toward the said EMA at $0.484, which coincides with the weekly open.
Hence, this confluence makes it a tough challenge for bulls. However, overcoming this blockade will indicate that the bulls are serious and have enough juice. This development could further propel ADA to the next hurdle at $0.542 after a 13% rally.
Interestingly, this resistance barrier is also a confluence due to the presence of the 34-day EMA. In some cases, Cardano price might extend the run-up and tag the 50-day EMA at $0.588 or reach for the round number at $0.60.
This move would constitute a 21% ascent from the $0.484 level and is likely where the upside is limited for Cardano price.
ADA/USDT 4-hour chart
On the other hand, if Cardano price faces rejection at the $0.484 confluence, it will indicate the weak state of the buyers and not enough bullish momentum. This development could see ADA retrace to the $0.435 support level.
Here, buyers would have a chance at a comeback. However, a four-hour candlestick close below this level will create a lower low and invalidate the bullish thesis for ADA. This situation may further result in a capitulation that could potentially crash Cardano price by 12% to $0.380, the weekly support level.