After Cardano’s price fell below $0.4 in October, it found support around the $0.34 level and bounced to the $0.43 level, where it initiated another short. The price has dropped by 21% since then as it continues to lose momentum by the day.
The past few days have been ugly for Cardano as it continues to shed losses due to the ongoing FTX saga. The party does not appear to be over yet. The price reduction could worsen in the coming week if Bitcoin’s price continues to decrease.
It is currently trading around the October low of $0.34 after failing to recover above the $0.378 level, which now holds as resistance. The bears are showing commitment again as the market steadily drops.
Cardano’s price has continued to respect the resistance trend line that has been forming since May. We can see that the short initiated after testing the resistance line has led to a serious loss over the past week. As long as the price continues to respect this resistance line, the price will remain in favor of the bears.
Before we can consider this market bullish again, the price would need to increase notably above the $0.4 level, especially above the drawn grey zone on the daily chart. But looking at the setup now, there’s no sign of a break on the current meltdown.
Cardano Price Analysis (ADAUSDT) – Daily Chart
The $0.311 level is currently held as support. A break below it could result in serious bleeding. The next support level to watch is $0.27 before dipping further to the $0.25 support level. Cardano may close the year below the $0.2 level if the market remains in a bearish condition.
In the opposite direction, it has held resistance at $0.378 and $0.43 levels following a rejection. If the price can recover well above these mentioned resistance levels, we can expect buy actions toward the $0.47 and $0.52 resistance levels.
Key Resistance Levels: $0.378, $0.43, $0.47
Key Support Levels: $0.311, $0.27, $0.25
- Spot Price: $0.34
- Trend: Bullish
- 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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