Cardano’s ADA trajectory remains bearish on the weekly chart but it has suspended selling and now looks calm on the day. More selling should be expected as it is yet to find solid support for reversal.
So far, ADA has registered a 40% loss in the last three months and from the look of things, it is likely to sustain pressure in the coming week due to the bearish sentiments surrounding the market.
However, it has temporarily paused selling and is now subjected to a brief consolidation phase in the 4-hour timeframe, which has led to a volatility squeeze on the daily timeframe.
This squeeze indicates an incoming expansion, which is most likely to cause more reductions in the next few days. But if things turn out positive, we can expect a little gain before expanding lower.
Looking at the daily price chart, ADA is trading closer to the bottom than its local top. A continuous breakdown should provide a bigger discount for buying in the long term. If that happens, $0.3 would be the key level to watch for a rebound.
Currently, the $0.36 level is acting as weekly support. If it holds, ADA may suspend bearish and start to show signs of strength on the daily chart. Still, it remains strongly bearish with no signs of recovery at the time of writing.
ADA’s Key Levels to Watch
The crucial $0.4 level has posed a threat to buying in the past few hours. A push above this level should bring a mini-recovery to $0.426. Above it lies $0.45 and $0.49 in case of more push.
It is important to note that the bears are still in control. If they mount pressure again to reclaim this week’s support, the next drop levels would be $0.30 and $0.26.
Key Resistance Levels: $0.4, $0.426, $0.49
Key Support Levels: $0.36, $0.30, $0.26
- Spot Price: $0.386
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.
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