news 
Cardano (ADA) Price: Technical Patterns Emerge as Network Fees Decline to $316k
Despite a slew of negative fundamental metrics, technical indicators are hinting at a potential reversal in the Cardano price. The cryptocurrency is currently trading around $0.67, down approximately 50% from its December highs. A morning star pattern has emerged on daily charts, suggesting that bulls may be gaining traction.
The recent decline in network fees, which dropped to a staggering $316,000 in March, could be an early indication of renewed interest in the Cardano ecosystem. This decrease, combined with a Doji candle followed by a bullish candle, has created a morning star pattern – a reversal signal that has been known to precede significant price movements.
Support near the $0.60 level has thus far prevented further declines despite broader market uncertainty, and this technical support coincides with the 50% Fibonacci retracement level from recent highs. This level of support has proven resilient, preventing any extended bearish momentum from taking hold.
In the short term, Cardano faces immediate resistance at approximately $0.73, which aligns with both the 61.8% Fibonacci retracement and the 200-day Exponential Moving Average (EMA). A breakout above this level would represent a significant shift in market sentiment and potentially pave the way for an extended rally.
In the event that Cardano breaks through this resistance zone, the next target would be the 78.6% Fibonacci level around $0.92, representing a potential 37% gain from current prices.
Some analysts remain optimistic about Cardano’s long-term prospects despite near-term challenges. According to Elliott Wave theorists, the current price action may represent the second bearish phase of a larger pattern, typically followed by an extended period of bullish momentum. Under this scenario, Cardano could eventually reach $2, which corresponds to the 38.2% Fibonacci retracement level from all-time highs.
However, traders should be aware that there are downside risks. A failure to hold support at $0.60 could trigger a drop to the next support zone around $0.53, while a “death crossover” between the 50-day and 200-day EMAs would signal additional bearish pressure if it occurs.
The coming days will prove crucial in determining Cardano’s direction. A sustained break above $0.73 would confirm the reversal pattern and potentially trigger an anticipated rally, whereas failing to hold current support levels could extend the months-long downtrend.
In conclusion, while fundamental factors may be challenging, technical indicators are hinting at a potential reversal in the Cardano price.
Source: https://blockonomi.com/cardano-ada-price-technical-patterns-emerge-as-network-fees-decline-to-316k/
