After remaining relatively calm throughout last week, Cardano regained momentum and advanced buying near a key level today. while the bulls appeared back in action, the trend remains bearish on a mid-term scale.
Starting this month on a bearish note, ADA dumped to the $0.28 level and later bounced back due to a sharp rejection. This led to a temporal break in selling and the price increased by 25% to $0.35 in three days.
Failing to push above this price level due to a small bearish interception, the price fell briefly and remained relatively calm throughout last week.
However, trading got interesting this week as the price increased steadily to nearly $0.4 today. A further surge in volatility could bring trading back to the $0.45 level – where the market initiated a drop last month.
But if we look at the overall market structure, ADA is still in a downward spiral on the daily chart, indicating that the bears still have an upper hand. They may return if the bulls fail to sustain pressure.
From a technical standpoint, Cardano’s demand level is rising. We can expect more gains in the coming days. A flip above last month’s high would signal a slight change in the trend. As it stands, the bulls are currently gaining control.
ADA’s Key Levels to Watch
Source: Tradingview
Aside from the $0.317 and $0.28 levels that supported the market earlier this month, the $0.381 and $0.35 levels are now considered as close support. Losing all these levels could facilitate another drawdown in the market.
On the way up, the resistance levels to watch for a test are $0.423 and $0.457. A surge above this resistance could send the price to $0.49 and $0.52.
Key Resistance Levels: $0.423, $0.457, $0.49
Key Support Levels: $0.381, $0.35, $0.317
- Price: $0.394
- 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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