Cardano (ADA) has recently been a subject of discussion for unfavorable reasons following a network split into two chains due to a transaction glitch. This incident prompted several exchanges to temporarily halt trading of ADA.
The issue was promptly addressed by developers, and the blockchain has since returned to normal operations. Charles Hoskinson clarified that the network was not "shut down" but experienced a rare node bug.
Despite the swift resolution, the event led to a significant drop in ADA's price, with Bitcoin Cash nearly surpassing it in market capitalization. The panic has subsided, and ADA is now in a recovery phase.
Cardano Chart Analysis
The 4-hour chart indicates that the ADA price has been in a downtrend since late October, declining from approximately $0.65 to a low near $0.387 last week. This support level held, and the price is currently trading around $0.41–$0.42, suggesting that selling pressure may be easing. The initial resistance for bulls is situated near $0.44–$0.45, where the price recently experienced a stall.
Should the Cardano price successfully break above this range, the next target is projected to be near $0.48. Conversely, if sellers regain dominance, $0.387 remains a critical level to monitor; a breach of this level could initiate another downward movement.
The current chart patterns suggest that ADA may be forming a short-term bottom.
Market Indicators
Oversold conditions previously indicated by the RSI appear to have resolved, with the indicator now positioned within a more neutral range, suggesting healthy momentum.
The MACD is showing an upward cross, signaling early bullish momentum.
Open interest remains stable, indicating that traders are cautious and not heavily positioned long or short following last week's volatility.
ADA Price Short-Term Outlook This Week
ADA is anticipated to rally towards the $0.48 range if it can establish the $0.44–$0.45 range as support. If this does not materialize, the ADA price is expected to decline further into the $0.40 region and retest nearby support around the $0.38 mark. Broader market sentiment, particularly Bitcoin's sideways movement, will significantly influence these movements.
Currently, ADA appears more stable and balanced, no longer experiencing a freefall. With sentiment gradually improving and fears subsiding, Cardano has the potential for upward movement, though bulls still require confirmation.