Unlike many mid-cap altcoins, Cardano’s ADA is still within a buying range despite posting notable losses in the past weeks. It now trades near a crucial support, where the next market phase will be determined.
ADA’s market structure remains weak due to a steady reduction in the past months. This suggests a strong bearish presence while undergoing a deep correction daily. Still, its mid-term bullish trajectory remains intact.
However, the crucial $0.8 level has been standing as support since it initiated drops two months ago. Technically, things are likely to get uglier soon following the new sell order building up from the $1 level.
As we can see on the daily chart, ADA has been gathering volatility for almost two weeks, subjecting trading to choppy price actions. Due to this, we may see a crash. The key target level to watch would be $0.4.
Currently, the selling pressure is low due to a lack of interest from the bears’ side but we can anticipate a major move when they show strong commitment. That should trigger a heavy supply in the market.
The only condition for a bullish move right now lies in a rebound. If the mentioned crucial level continues to provide support, we can consider an upward movement with a double-bottom pattern. As it stands, the bears are most likely to have an upper hand in the near term.
ADA’s Key Levels to Watch
Source: Tradingview
Breaking down the holding $0.86 support could cause a serious sell-off to $0.765 and $0.65 before reaching the mentioned key target level.
If ADA continues to hold the mentioned level well, we may see a bounce back to $0.988. Retaking January’s $1.152 high should send us to the $1.32 resistance with a potential break up to $1.5.
Key Resistance Levels: $0.988, $1.152, $1.32
Key Support Levels: $0.86, $0.765, $0.69
- Price: $0.93
- 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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