Cardano looks weak today after recording a double-digit gain in the last 7 days. The weakness came after the bulls failed to push higher since last weekend. It may tap more profits if the bulls resume pressure.
Last week saw ADA and other altcoins through a significant recovery after dipping to a multi-month low of $0.22 in the past few days, and at the same time brought the price to retest $0.3 – the monthly breakdown level.
Unfortunately, that level was rejected with a double-top on the hourly and is now looking poise for a drop. Although there’s still room for more recovery if the bulls can reinforce more actions. The daily resistance line is the target to watch for short-term movement.
Following the potential bearish pattern on the hourly chart, the asset could see a major pullback before it starts to pick up again. And if the price pulls below the holding monthly low, more selling pressure should be expected.
For now, the trend is still on the bears’ radar. But looking at the market structure from a short-term perspective, ADA is likely to change the trend soon. It must break through the resistance line to confirm a reversal on the daily chart.
ADA’s Key Levels to Watch
While the current weakness in Cardano’s price is triggered at $0.3, the $0.323 level is the next resistance to keep in mind if the price continues to recover. There’s also resistance at $0.34 and $0.357 in case of more increase.
Towards the downsides, the immediate support level to watch for a drop is $0.273, followed by $0.25 and the holding $0.22 level. Below it lies $0.2 if a breakdown occurs.
Key Resistance Levels: $0.30, $0.323, $0.34
Key Support Levels: $0.273, $0.25, $0.22
- Spot Price: $0.29
- Trend: Bullish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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