Cardano (ADA) price at $0.785 drops by 4% today, signaling a loss in bullish momentum after the 19% rally last week. Despite the short-term pullback, Cardano community remains upbeat with recent Brave Wallet integration of ADA token and Charles Hoskinson teasing more to come. Further, the possibility of a post-retest turnaround looms over the ADA price trend. Will Cardano bounce back to $1 with the Midnight upgrade hype?
Cardano Price Analysis Signals $0.75 Retest
Cardano price recently surpassed the $0.75 stronghold to form a weekly high at $0.864. However, the ADA price struggles to hold the higher ground and plunges by 4% today. The pullback comes after Cardano reversed from the $0.864 peak on Monday, limiting the daily surge to 1.61%. Notably, the volatility has increased significantly after the 4.17% crash on Sunday.
Despite the increased volatility, Cardano floats above the $0.75 demand zone and hints at a post-retest reversal. The retest chances arise in the backdrop of a recent inverted head and shoulders pattern breakout with a neckline near $0.75, as seen in the ADA price chart. Based on the bullish pattern breakout, the 41% post-retest reversal could reach the $1.08 target calculated by adding the pattern’s depth to its neckline.
Due to the sharp fluctuations in Cardano price, the Relative Strength Index (RSI) peaks near the overbought zone and reverses. This reflects a drop in momentum during the retest phase. However, the rising 50- and 200-day Exponential Moving Averages (EMAs) hold the golden crossover possibility.
According to the trend-based Fibonacci levels, the bounce back in Cardano from 23.60% Fibonacci at $0.762 could hit the 50% level at $1.08. However, a short-term hurdle remains at the 38.20% level near $0.92.
Conversely, a failure to hold the $0.75 zone will nullify the pattern breakout and could result in a pullback to the 50-day EMA at $0.71.
Optimism Surges as Midnight-Driven Partnerships Become Reality
Cardano’s community sentiment remains unfazed amid the pullback with the recent partnerships and Charles Hoskinson’s comment. Recently, the long-anticipated integration of ADA token with the Brave Wallet turned into reality, fueling the real-word applicability of Cardano.
With its announcement, Charles Hoskinson fuels the rising optimism of Cardano community and investors by tagging it as the first of many upcoming deals. Charles also shared the deals as long overdue and originally planned to roll out in 2022, but “A certain entity dropped the ball, we got ignored.” The upcoming deals will be announced throughout Summer and Fall this year, originating from the Midnight release negotiations.
Amid new partnerships and upgrades, the sentiment around Cardano improves, hinting at a growth in ADA price and undermining short-term volatility.
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