Cardano hints at its first green candle after five days of selling. Will this recovery result in an ADA price surge to reclaim the lost $0.92 level?

Cardano has dropped nearly 12% over the past week as the crypto market remains volatile. Currently, ADA is trading at $0.7176, showing an intraday recovery.

Notably, this recovery comes after five consecutive days of declines, signaling the potential for continued downward pressure. As Cardano stands at a crossroads, the question remains: Will the bulls regain control of the trend? Let’s find out.

Cardano Price Ready For Bounce Back?

On the daily chart, the Cardano price trend shows a sudden halt to the ongoing decline, with an intraday recovery of 7.23%. This could signal the formation of a potential tweezer bottom, as Cardano fluctuates between the 50% and 61.8% Fibonacci levels.

These Fibonacci levels are at $0.6272 and $0.7351, respectively. Currently, with a 24-hour high of $0.7335, Cardano appears poised to bounce back for a potential V-shaped recovery.

However, the technical indicators are mixed due to the prevailing downtrend. The DMI indicator shows a negative crossover, with the VI lines shifting sideways after the recent crash.

Additionally, the daily RSI has dropped below the halfway mark but is showing an uptick with the intraday recovery. As a result, momentum indicators suggest weakness in bullish momentum due to the steep correction.

Whales Load Up 180 Million ADA Tokens

As Cardano’s price declines, crypto whales are taking advantage of the dip to acquire more ADA tokens. According to analyst Ali Martinez, crypto whales have purchased 180 million ADA tokens in the past week.

This has raised the holdings of whales with 1 million to 10 million ADA tokens in their portfolios to 6 billion. With whales continuing their strategy of buying the dip, the chances of a bullish comeback for Cardano are increasing.

Cardano Price Targets Amid Recovery Chances

With the intraday recovery and support from crypto whales, the likelihood of a bullish turnaround is growing for Cardano. Based on Fibonacci levels, a breakout above the 67.8% level at $0.7351 could present the next buying opportunity.

The next price target is the 78.6% Fibonacci level at $0.9216. On the other hand, Cardano’s key support is found at $0.65, with the 50% Fibonacci level at $0.6272, which provides further support.