Cardano’s short-term outlook is slowly turning bullish, following a new reversal pattern in the daily timeframe. The buyers look stuck after failing to overcome a key resistance level during yesterday’s surge.
After a short pullback into the $0.32 range in the mid-month, Cardano climbed back and continued to post gains daily until it flipped through a key $0.40 resistance level to reach a high of $0.416 yesterday.
That high was rejected and the price slipped back under the mentioned key resistance. Though the short-term bullish formation is still valid, but the price appears weak on the day. A continuous drop from the current trading level could bring a small pullback – just like the one we saw in the mid-month – before bouncing back.
However, the bulls are still in control on the monthly scale. If they push higher to retake the recently rejected high, a bigger price movement can be expected in the next few days before initiating a minor pullback.
Following the mini recovery since the start of the month, it is important to note that ADA is still trading in a bearish zone on the mid-term scale.
Should the price dip again, it must break below the $0.28 level before confirming another leg down. Currently, it appears to have finished the major corrective phase from a technical perspective. More growth can be expected in the future.
ADA’s Key Levels to Watch
As ADA cooled off buying after meeting resistance, we may see a small retest at the $0.365 support level that flipped as resistance on Tuesday. Below it lies the bounced $0.325 level in the mid-month, followed by the monthly $0.30 low and $0.276 – August’s low.
A successful break above the key resistance level could rally us to $0.45 and $0.49. Higher resistance levels for an increase are $0.52 and $0.57.
Key Resistance Levels: $0.45, $0.49, $0.52
Key Support Levels: $0.365, $0.30, $0.276
- Price: $0.398
- Trend: Bullish
- 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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