After witnessing low volatility for several days, Cardano surpassed a psychological level and printed a new high. It fell throughout this week and shed a 15% loss in a week. But recovery is underway.
Before surging through the $0.40 resistance level last week, Cardano witnessed a serious shrink in volatility for days due to a decrease in buying volume. After that, the price rallied and reached an exhaustion point at around $0.46 in the same week.
Because of the steady positive action that week, the sentiments dropped and turned out negative this week. The price fell throughout the week and brought trading to a low of $0.38.
It has managed to hold that low level with a 4% bounce over the past few hours. The latest buying reaction has brought a small relief to the price actions. The market is slowly picking up again.
ADA is likely to regain momentum if the price recovers back above the recently flipped resistance level. But if this resistance suppresses buying pressure again, the price may drop and look for solid support to foot a fresh bullish.
Despite the recent drops, the trend still looks bullish on the higher time frame. The daily chart shows that the price forms inside an ascending channel. The price would need to plunge below March’s low to consider a strong bearish.
Cardano’s Key Levels To Watch
It has shown a sign of recovery a few hours ago. If the price increases further, particularly above the $0.4 resistance level, the next resistance level to watch is $0.42, followed by $0.44 and $0.463.
If the price drops below yesterday’s low of $0.376 and looks for a lower level, the supports to watch are $0.357 and $0.336, sitting right on the channel’s lower boundary.
Key Resistance Levels: $0.4, $0.42, $0.44
Key Support Levels: $0.376, $0.357, $0.336
- Spot Price: $0.39
- Trend: Bearish
- Volatility: Moderate
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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