Cardano ADA resumed bearish actions this week following a fresh meltdown across the crypto space. The price appears weak as it heads towards a support line, where a major break or bounce is likely to play.
In mid-March, Cardano went through a serious drop after testing the $0.8 level. It later found solid ground above the $0.58 level and bounced back for a week. Unfortunately, it saw a rejection and closed the month indecisive after days of consolidation.
Yesterday, ADA’s selling volume increased and the price broke down from the consolidation phase. This brought the bears back as they gained more control. Despite that, the price is still in favour of the bulls from the mid-term perspective.
Right now, things are looking uglier for the 9th largest crypto by market cap as it advances selling pressure near a crucial ascending trendline that served as diagonal support since late 2023.
We can expect a bounce back if this ascending trendline provides support once more. That could bring the bulls back in the market. Even if that occurs, the bulls must retake the March high to validate a continuation.
A dip below this trendline could cause a sell-off to the current yearly low before finding strong support. From a technical standpoint, it appears bearish on the daily chart, looking ready for a bigger drop.
ADA’s Key Levels to Watch
Cardano’s bears are currently facing the $0.59 support level. If they scale through this key support, the ascending trendline might pose a threat before dipping to $0.54, $0.50, and potentially $0.46 – the current yearly low.
In case of a rebound, the closest resistance for a retest lies at $0.64. A push through this resistance to the $0.68 level could bring more recoveries to $0.735
Key Resistance Levels: $0.64, $0.68, $0.735
Key Support Levels: $0.59, $0.54, $0.50
- Spot Price: $0.597
- 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.
Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news!
Image Source: iuriimotov/123RF // Image Effects by Colorcinch