Cardano appears to have found support on a crucial trendline after past weeks of drops. It must reiterate the latest positive actions for the next few days to signal a bullish reversal.
After a three-week decline, Cardano finally retested the eight-month descending trendline that got flipped in January. It found support above it and bounced to a trading price of $0.336 after the price consolidated for three days.
Although the $0.3 support level looks temporal. The latest recovery is low compared to the losses since mid-February. The bounce from this support appears more like a retest of last week’s crackdown.
But a look at the bullish engulfing candle that formed on the daily chart yesterday indicates that buyers are showing strong interest, as revealed on the candle. They are likely to regain control if they can push higher.
However, it is essential to note that yesterday’s volatility was somewhat high compared to what we saw in the last three weeks. The last time a similar volume surface was in mid-February when the price started to decrease.
This increase in volume could be a bullish sign, but there’s a need for an increase above the $0.35 level or perhaps a slight pullback before confirming a buy. It currently faces hurdles around last week’s breakdown level.
Cardano’s Key Levels To Watch
Here are resistance levels to pay attention to in case of more recovery. Last week’s breakdown support of $0.345 is currently acting as a resistance level. If ADA reclaims it, other resistance levels to watch are $0.376 and $0.4. It must climb above the $0.42 resistance level to validate a mid-term rally.
The closest level for a pullback lies at $0.325, while the $0.30 level holds as confluence support. If the price falls below them, there is still hope for buyers at $0.27. The last defense line for the bulls lies at $0.24.
Key Resistance Levels: $0.345, $0.376, $0.4
Key Support Levels: $0.325, $0.30, $0.27
- Spot Price: $0.336
- 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.