Cardano remains in a red on the daily but has managed to recover briefly above the $0.45 level since yesterday. It lost 14% in the past week, but it may continue to dip until it finds strong footing for an increase.
Two weeks ago, ADA rejected the $0.617 level and initiated another drop in continuation of its correction, which started last month. Yesterday, the price slipped under its 7-week low and quickly climbed back.
It resumed selling today and is now attempting to drop off this low. Selling pressure has slowed down a bit in the past hours, but we can expect an expansion as soon as volatility increases.
Holding yesterday’s $0.447 low as support might trigger a retest of the recently collapsed level of $0.5 as resistance. Such a scenario could pause bearish actions for some days before resuming fall.
Looking at the market structure from a technical standpoint, ADA is still positioned in a downtrend and at the same time remains under the bears’ watch and control.
Despite losing 23% of its valuation in the last 30 days, ADA is still within the bullish zone on the monthly chart and at the same time trades far above its three-month low. But from the look of things, the bearish party is not over yet. More price collapse is underway!
ADA’s Key Levels to Watch
The latest slowdown in selling was triggered by the latest buying reaction on the lower time frame. If the selling volume increases, ADA may collapse through the $0.465 support to test $0.4 and potentially $0.35 in the future.
Currently, the $0.51 level is held as resistance. A push above this level could allow buying to $.545. More push from there could see the price increase to $0.58 when the buyers gain control.
Key Resistance Levels: $0.51, $0.545, $0.58
Key Support Levels: $0.465, $0.4, $0.35
- Spot Price: $0.475
- 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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