Cardano Price Analysis: Dead Cat Bounce or Recovery for ADA Following 9% Daily Surge?

Despite the massive selling pressure over the past few days, ADA has managed to hold firm at the $0.45 support level. But is the current upward momentum a dead cat bounce or the beginning of a recovery?

Key Support levels: $0.45, $0.38 

Key Resistance levels: $0.45, $0.55

After a significant crash, the market is taking a breath, and ADA seems to have found good support at $0.45. If this key level can hold any further selling pressure, then the cryptocurrency might reverse this trend and test the key resistance at $0.55.

ADAUSDT_2022-06-14_13-20-52
Chart by TradingView

Technical Indicators

Trading Volume: Volatility exploded in the past week, which has put tremendous pressure on the levels shown on the chart. The volume spiked yesterday, but ADA managed to hold strong at the key support. This is encouraging.

RSI: The daily RSI managed to make a higher low during this latest crash. If the price stays above the key support, then bulls may attempt to regain control.

MACD: Unfortunately, the daily MACD has turned bearish yesterday, but this is not a major concern as long as ADA maintains its support at $0.45.

ADAUSDT_2022-06-14_13-20-36
Chart by TradingView

Bias

The bias for ADA is neutral, but given the overall market condition – it leans toward bearish

Short-Term Prediction for ADA Price

ADA is at a critical support level which was defended successfully three times to date. This is an impressive achievement in a market that completely tanked over these last few days making lower lows.

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