Is $0.07 ADA Price Possible by the End of May?

Cardano has had a troubling time over the recent period after the coin dropped by a total of 5% over the past 24 hours of trading, bringing the current price of the coin down to around $0.061. Cardano remains ranked in 10th position amongst the top cryptocurrencies by market cap value, as it presently holds a $1.59 billion market cap;

As you can see above, if Cardano continues to fall, Tron will be able to take over its position and claim the 10th place within the rankings.

Cardano has lost a total of 11% over the past 7 trading days, with a further loss of 26% over the past 30 trading days. Furthermore, the recent price drop over the previous day has caused ADA to drop beneath the 100-day moving average once again for the first time since mid-March 2019.

Despite the recent price declines, the price for the coin is up by a total of 60% over the previous 90 trading days after the bullish surge witnessed in March 2019.

In this article, we will take a look at the possibility for Cardano to rise and reach a price of $0.07 by the end of May 2019. For Cardano to reach the target price of $0.07, the cryptocurrency will need to rise by a total of 13% over the remainder of the month.

Let us take a look at the ADA/USD market and highlight some potential areas of support and resistance as we move forward.

Cardano Analysis

ADA/USD – MEDIUM TERM – DAILY CHART

What Has Been Going On?

Cardano had seen an impressive price surge during March 2019, after the coin managed to break above the 100-day moving average and rocket by a total of 84% from low to high over the course of the month. During April 2019, the coin continued to climb higher and even managed to reach a high of $0.10 before rolling over at resistance around the $0.090 level.

The coin has been falling since reaching this resistance, and has now recently fallen below the 100-day moving average level during May 2019.

What Is the Short-Term Trend?

The recent drop beneath the 100-day moving average has now rendered this trend as a bearish condition. For the market to turn bullish once again, we would need to see ADA/USD climb and break above the $0.072 level.

Where Can We Go From Here?

As the bearish momentum is in control, we can expect the market to continue to fall lower. However, there is strong support approaching at the .618 Fibonacci Retracement level (drawn in green), priced at $0.060. We expect this level to hold and allow the bulls to attempt to regain control.

If the market continues to drop further beneath $0.060, we can expect further support to then be located at the $0.055 level, which contains a downside 1.272 Fibonacci Extension level (drawn in red).

What If the Bulls Take Control of the Market?

If the bulls can manage to regain control of the market at the $0.060 support level and start to cause ADA/USD to climb, we can expect immediate resistance above to be located at $0.065, where the 100-day moving average hovers.

If the buyers continue above $0.065, higher resistance is then expected at $0.067 and $0.068. If the price can rise above $0.068, it will be free to make an attempt at the $0.07 target level.

Above the target, higher resistance then lies at $0.072 and $0.075.

What Are the Technical Indicators Showing?

The RSI continues to nosedive beneath the 50 level as the bears continue to gain control over more momentum. However, the RSI is starting to approach oversold conditions, where we can expect the selling momentum to reach exhaustion and allow a rebound to occur. If the RSI can reach oversold conditions around the $0.060 support level, this could be a great combined signal for a bullish reversal.

Conclusion

Cardano has been taking a small beating from the market recently after dropping by 26% over the past 30 days, however, support is close by at the $0.060 level. If the bulls can hold the $0.060 level, we can expect ADA/USD to attempt to reverse and possibly rise and reach the $0.070 level before the end of the month.