Buyers protect the important support level: Will ADA return to $1?

Typically, strong bullish trends are accompanied by deep corrections, and Cardano (ADA) is no exception. These declines usually shake out weak investors before the upward trend continues. So, has ADA reached a short term peak or is this a buying opportunity? Let's analyze the chart with Bitcoin Magazine to find out.

Cardano Price Prediction

ADA has surpassed the upper resistance level around $0.86 on Monday, but the bulls could not push the price higher.

ADA/USDT Chart – 1 Day | Source: TradingViewThe price fell sharply on Wednesday, dropping below the breakout level of $0.86. The bears pulled the price down towards the 20-day simple moving average at $0.73( on Thursday, but the long tail on the candle indicates strong buying pressure at lower levels.

The bulls will try to test the resistance level at $0.94. If this level is surpassed, the ADA/USDT pair could rise to $1.02 and then head towards $1.17.

On the contrary, if the price falls and slips below the 20-day SMA line, this indicates that the breakout above $0.86 could be a bullish trap and ADA risks plunging around the 50-day SMA line )$0.66(.

![])https://img-cdn.gateio.im/webp-social/moments-44b4f32102baa248f4a9411658b12629.webp(ADA/USDT Chart – 4 hours | Source: TradingViewThe moving averages are about to form a bearish crossover on the 4-hour chart, indicating an attempt at a reversal by the bulls. The recovery momentum may encounter selling pressure at the SMA 20.

If the price falls from the SMA 20 line, this altcoin could drop to $0.75 and then to $0.70. The deeper the fall, the longer the time to start the next bullish phase.

Buyers will have to push the price above the SMA 20 line to regain control of the market. If they can do that, ADA could rise to $0.90 and then to $0.94.

Vincent