In the ongoing market recovery, Cardano has increased by roughly 16% in the past week of trading but the trend remains bearish on the monthly outlook. It may resume selling pressure if the supply level increases.
Cardano has technically suspended selling pressure for more than a week and as we can see, it appeared bullish on the lower timeframe.
But adjusting to the higher timeframe, it is still in a downtrend as more drops might surface in the next coming week. This could cause another serious loss in the market as the price rolls to the bottom level of $0.27.
Considering the current price increase, which looks much more like a pullback, ADA is likely to resume the bearish actions anytime soon. We can expect that to come into play if the supply level increases again.
The demand level has been on a steady rise for over a week, bringing a relief in the sell-off. If the bulls show commitment by sustaining the latest buying pressure, we can expect bigger gains in the coming days.
Even though the bulls sustain pressure, they must retake April’s high to validate a reversal. While the market sentiment is currently bullish, it is important to say that the overall bias for ADA remains bearish from a technical standpoint.
ADA’s Key Levels to Watch
Source: Tradingview
On the way up, ADA may face resistance at $0.426 – which stands as the current monthly high. Flipping through it could propel buying to a minor $0.45 resistance before tapping $0.49. The $0.522 resistance is an internal breakpoint to watch in case of a surge.
If the price slides below the $0.4 level that currently provides support, the lower levels to consider for drops would be $0.36 and $0.317.
Key Resistance Levels: $0.426, $0.49, $0.522.
Key Support Levels: $0.4, $0.36, $0.317.
- Price: $0.41
- Trend: Bearish
- Volatility: Low
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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