Last month saw Cardano through a small relief period after undergoing a two-week bounce off a key low level. However, it later encountered resistance and slowly resumed bearish momentum daily.
ADA’s market structure has continued to turn bearish on a daily scale due to a lot of deductions in the past few days. Things have become uglier this week since it reinitiated a drop under $0.46 last month.
As shown on the daily chart, the bears are back in action and are now aiming to retake the recent low. Although they just faced small hurdles and the price increased briefly in the past hours.
But looking at the bigger picture, Cardano’s trend is still in a downward range on the macro level. While there are no signs of reversal yet, the bulls’ are showing little-to-no commitment at the time of writing.
Due to this, more sell-off can be expected in the next few days. But if things turn out positive as a result of a rise in the demand level, the market may regain strength and start to increase notably. For now, it is undergoing a pullback on the hourly chart.
Following the monthly bearish crossover, ADA may shed more losses in the next few hours. A break below the previous monthly low could activate an explosive drop towards the 2023 bottom.
ADA’s Key Levels to Watch
The potential support levels to consider in the next leg down are $0.35 and $0.317. If the price breaks below these mentioned supports, the next target would be $0.28 and $0.25.
While it is undergoing a pullback on the lower timeframe, the resistance to watch is $0.381. Above it lies the $0.423 resistance followed by the $0.457 level.
Key Resistance Levels: $0.381, $0.423, $0.457
Key Support Levels: $0.35, $0.317, $0.28
- Price: $0.37
- 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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