Amid negative market sentiment, Cardano ADA is down 26% weekly despite remaining indecisive for days. But it seemed the supply level is rising again following the current bloodbath – brews for another sell-off.
Cardano took a sharp turn six weeks ago after increasing by 2x in five months to tap the $0.81 level. This led to a serious meltdown as weak hands continued to panic sell their holdings.
While the asset has lost half of its value on the spot trading so far, several millions of long positions were also liquidated on the futures trading. The bulls are still in a disbelief state as they are yet to recover from the recent losses.
However, it is important to note that most altcoins have entered a major correction phase due to the upcoming halving event in crypto space lately. Things might get crazier with the ongoing build up.
The aftermath of these broader corrections might position the market in an extremely oversold condition soon, providing huge buying opportunities for a long-term accumulation.
However, ADA may appear currently weak, but we can expect a strong recovery as the future looks promising for the 10th largest asset by market cap. Right now, the bulls are off the market as there are no signs of major buying.
ADA’s Key Levels to Watch
ADA looks indecisive but is currently on the verge of breaking lower again. Last week’s $0.4 support may be revisited before initiating more crackdowns to the $0.35 level. The $0.3 support level would be the next area of interest for the bears.
In the meantime, the $0.5 level should serve as an immediate resistance for the bulls. If they react to the level with a push, the next resistance to watch would be $0.56 and $0.625.
Key Resistance Levels: $0.50, $0.56, $0.625
Key Support Levels: $0.40, $0.35, $0.30
- Spot Price: $0.44
- Trend: Bearish
- Volatility: High
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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