Can ADA Holders Find September Extremely Bullish After $0.50 Breakout?

With a 20% drop last week, buyers failed to maintain dominance at the $0.50 mark resulting in a decline to the $0.43 mark. However, the price trend reverses this week, resulting in a slight recovery teasing a bullish reversal to the psychological mark of $0.50. Will this breakout result in a bullish month for Cardano, or is a reversal ultimate?

Key Points:

Source - Tradingview

ADA Technical Analysis

The ADA prices fell sharply after facing higher price rejection at $0.57 resulting in a 20% drop within a week. The downtrend breaks below the psychological mark of $0.50 and the crucial supporting 50 and 100-day SMAs. Nonetheless, the small body at low price reduction candles questioned the downfall nearest $0.43 mark.

Currently, the daily candle shows a 2.80% price jump and is preparing to rise above the broken SMAs. If the increase in buying pressure drives the market price above $0.50, traders can expect a bullish crossover in the 50 and 100-day SMA.

The low volume reversal from the $0.43 mark reflects a high possibility of $0.5 resistance. The bearish reversal from this overhead barrier could tumble the prices 10% lower and breach $0.43. The continuation of the prevailing downfall can slump the altcoin to July low support of the $0.4 mark.

On a bullish note, the $0.5 resistance breakout will trigger a new recovery cycle that pushes the ADA price 24% higher to hit $0.59. Furthermore, the bullish crossover of the 50 and 100-day EMA will fuel the uptrend to rise higher to the $0.64 mark.

Technical Indicators

Amid the recent relief rally, the RSI slope wavering below the midline reflects the market sentiments still bearish. Despite a breakdown below the midline, the fast and slow slope closing in for bullish crossover reflects a slight weakness in bearish momentum.

Hence the technical indicators support the downtrend possibility of ADA prices under the 50-day SMA.

Resistance Levels: $0.50 and $0.64

Support Levels: $0.43 and $0.38