Most altcoins have posted impressive gains since last week due to an enhanced volume across the crypto space. Large-cap like ADA has bounced slightly from its five-month low with 4% gains in one week.
In April, Cardano rejected the $0.46 level and started to lose momentum after testing the level as the yearly high. During that period, the price crashed to a low of $0.22 in mid-year and quickly recovered to a high of $0.38 within a month.
A rejection at this mentioned high triggered another selling pressure for two months. However, volume dropped a bit as there was not much supply to plummet the price below the mentioned mid-year low.
Interestingly, it found temporal support after reacting well to the $0.24 support level in September. That support provided a bounce and the price increased slightly to where it currently changes hands at $0.255.
While this bounce led to a brief suspension in negative actions, it has continued to show signs of strength by the day. If volatility expands in the next couple of days, we can expect a strong price movement towards the descending trendline, which has been serving as resistance since April.
Crossing this resistance line could fuel a short-term rally to $0.323 and $0.38. On the other hand, a big sell-off should be expected if the price plunges below the current support level. Despite the recent gains, ADA remains bearish from a mid-term perspective.
ADA’s Key Levels to Watch
ADA is currently facing a weekly resistance of $0.26. A daily candle close above this resistance could advance the price to $0.28 and $0.30, where the resistance line lies.
If a pullback occurs, the level to watch is $0.25. A drop below last month’s low could make the price test $0.22 and potentially $0.20 in the next drawdown.
Key Resistance Levels: $0.26, $0.28, $0.30
Key Support Levels: $0.24, $0.22, $0.20
- Spot Price: $0.255
- Trend: Bullish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.