The price of Cardano is notably down today due to the sharp dive in Bitcoin’s price. The trend now appears to have shifted in favor of the bears.
Cardano has finally taken a downturn after rising by over 50% in the past weeks. Following Bitcoin, it has lost roughly 10% of its value in the past 24 hours as more potential drops lie ahead.
In terms of price actions, today appears to be more volatile for Cardano following this week’s decrease across the cryptocurrency market. There’s a shift in the trend, and levels have now changed to the downside.
As a result of this, the bears gained dominance and now looking for lower levels. This has led to a strong bearish formation on the daily chart with a formed engulfing candle.
The 4-hour chart displays the bigger picture as the New York traders drop the price below the weekly support of $0.38. The Asian session will likely reiterate actions before we can see a temporal relief during the London session tomorrow.
However, it may be the drawdown is just starting. We should expect a more sell-off in the coming days. The retracement move is likely to end above the $0.3 level. From there, a strong impulsive movement is expected to reactivate the existing bullish trend.
The bulls will have to defend the $0.24 against a crackdown if a deep retracement occurs.
Cardano’s Key Levels To Watch
Following the latest reductions, the closest support level for this drawdown is $0.35. The level to watch below this support lies at $0.33. There is also support at $0.27 in case sellers mount pressure.
The chances for an increase are very slim at the moment. Any push would be considered a pullback. For now, the levels held as resistance are $0.38 and $0.4. Above them lies $0.44, where sell action was initiated on Feb 2.
Key Resistance Levels: $0.38, $0.4, $0.44
Key Support Levels: $0.35, $0.33, $0.30
- Spot Price: $0.36
- 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.