Cardano ADA struggles to break neckline resistance! $0.35-$0.60

ADAUSDT

Cardano has declined from the neckline of the inverse head and shoulders pattern, indicating that the bears are attempting to impede the recovery at this level.

On the downside, traders should keep a close eye on the 20-day EMA ($0.38). If the price rebounds from this level, it will indicate that the sentiment remains positive, and investors are purchasing on pullbacks.

In such a case, the likelihood of a break above the neckline would increase, thereby completing the reversal pattern. The ADA/USDT pair may then embark on a new uptrend towards $0.60.

However, if the pair falls below the 20-day EMA, it would suggest that short-term traders are taking profits, leading to a decline towards the 200-day SMA ($0.35).

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