ADA tried to regain strength two weeks ago, but it lost momentum and continued to show signs of weakness daily. While ranging, it has shed a 10% loss in a week as it slowly rounds up the month in a negative mode.
The late last month’s recovery has brought a small relief in the market as Cardano formed a bullish pattern. But unfortunately, it witnessed notable losses earlier this month and suspended the potential bullish movement.
This action invalidated the reversal signal from a technical standpoint and the market slowly switched back to its bearish mode. The price picked up again this mid-month and increased by 20% near the $0.52 level.
It lost momentum from that level exactly a week ago and slipped to the $0.45 level, where it has been witnessing little to no movement for days.
Looking at the bigger picture, ADA is neutrally ranging as shown on the daily chart. It must break away from the tight trading range to determine the next major direction. Right now, sentiments remain neutral-bearish.
As many top altcoins are rounding up the month with a notable gain, ADA continued to post loss daily as it is yet to find a key level to initiate a bullish reversal. A drop below $0.42 may stir another leg down. There is nothing much to expect for now until a break occurs.
ADA’s Key Levels to Watch
Source: Tradingview
The $0.45 level has provided support since last week. If it fails due to more drops, the $0.426 and $0.40 supports are the next levels to consider for a test. Below it lies the $0.35 level.
For a bullish move, the first obstacle to watch is the $0.522 resistance, followed by the $0.56 and $0.60. A surge above the $0.625 resistance could fuel more gains in the mid-term.
Key Resistance Levels: $0.522, $0.56, $0.625
Key Support Levels: $0.426, $0.40, $0.35
- Spot Price: $0.458
- Trend: Neutral
- 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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