Cardano is approaching its 12-month support level, which helped it initiate a massive spike. The technical indicators suggest a repetition of this bullish price action.
During the course of the past 7 days, Cardano was performing well during the first three days of the week. The coin was fluctuating between $0.36 and $0.38.
However, come midweek, the coin started to crash hard and fell below the weekly opening market price of $0.365. The crash continued until the coin reached its lowest price of $0.34. After a small correction, ADA is back up again at $0.35
ADA approaches crucial support
Despite the recovery, the coin is still heading down towards the $0.34 support level once again. This support level has been quite a poignant level to ADA. This level is quite significant because it produced a massive spike of 75% back in November 2024. Given the occurrence of this historic event, the market is once again looking for reciprocation.
On the daily chart, the Relative Strength Index (RSI), which gives the gains and the losses of the coin as a ratio, has turned upwards. During the 2024 November spike, the RSI turned upwards and crossed its simple moving average line. The same intersection is happening again, and a spike is anticipated as such.
Death cross appears on weekly chart
But, according to the weekly chart, the technicals do not show favorable conditions for a rally. Why? There is a death cross appearing: the 50-day moving average is about to cross the 200-day average below it. When this happens, these prices usually crash. This could disrupt all hope of a rally.
However, even if the death cross occurs and ADA prices crash, there is a window for it to recover. Let’s say Cardano crashed below the $0.35 support level, which produced the spike, and landed on the next support level at $0.32.
All hopes of a rebound would be lost. But, based on the price action displayed on the chart above, the coin could still recover and bounce back into a rally.
