Key Notes

Key Notes:

Charles Hoskinson remains bullish, announcing Bitcoin support for LACE, potentially boosting Cardano’s ecosystem.Technical indicators remain optimistic, with MACD and RSI showing minor shifts in momentum, not a full reversal.Recovery rally targets $0.9173 (50% Fibonacci), with a breakout opening doors for $1.08 (78.6% Fibonacci).

The rising fluctuations in the crypto market clash with Bitcoin and the $96K mark, increasing the bearish influence over the crypto market. Amid the rising liquidations, Cardano ADA $0.78 24h volatility: 2.9% Market cap: $27.95 B Vol. 24h: $543.34 M faces an intraday hit of 3.87% pullback.

With the quick reversal, Cardano is back under $0.80 and is now trading at a market price of $0.777. Will this intraday pullback nullify the chances of a post-retest reversal in Cardano? Let’s find out.

In the daily chart, the Cardano price trend reveals a bullish reversal from the $0.68 support level. The recovery run overcomes the local resistance trendline and marks a bullish breakout of a falling wedge pattern.

Cardano Price Chart

With the short-term reversal topping out above $0.80, Cardano retests the broken resistance trendline. Following the retest, Cardano created a bullish engulfing candle with a 4.8% jump on Monday.

This marked a bullish start to the week and created a morning star pattern, increasing the chances of a post-retest reversal. However, spoiling the bullish plans, Cardano registers a pullback of more than 3%.

This breaks under the 23.6% Fibonacci level at $0.78, casting various doubts over the chances of a post-retest reversal.

Moreover, the rejection near $0.80 suggests strong overhead resistance, which could limit short-term upside potential. If buyers fail to regain momentum soon, the bearish grip might tighten further.

Nevertheless, the technical indicators maintain an optimistic viewpoint. The MACD and signal line maintain a positive alignment, and the daily RSI line stays near the halfway level.

Hence, the momentum indicators reflect just a minor shift in momentum and not a complete reversal.

Despite the short-term bearishness, the founder of Cardano, Charles Hoskinson, remains extremely optimistic about the future of the network. In a recent interview, Charles said:

“Very shortly, we will have Bitcoin support for LACE. We think LACE will be the best Bitcoin DeFi wallet, bringing a lot of transactions from Bitcoin into Cardano.”

LACE will go beyond Bitcoin to other assets and also move into mobile platforms. This reflects Charles Hoskinson’s optimism for the Cardano network and signals a massive ecosystem shift.

With this integration, Cardano could position itself as a serious competitor in the DeFi space, challenging Ethereum’s dominance in cross-chain transactions.

This will bring Bitcoin DeFi to the Cardano network, increasing its user base and network revenue significantly.

As the short-term trend continues to remain bearish, the Cardano price is likely to retest the broken resistance trendline near the $0.75 mark. Closing under the trendline will likely test the $0.68 support level.

On the flip side, a bullish sustenance above the 23.60% level will likely prolong the recovery rally to challenge the 50% Fibonacci level at $0.9173. Optimistically, stability in the market could break the 78.60% resistance level at $1.08.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.

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