ADA’s bearish trajectory continued to suspend daily due to a recent bounce off a ten-month low. Despite appearing weak on the macro level, it has registered an impressive gain in the past week.
Following last week’s bounce that led most altcoins into their minor gains this week, Cardano also posted nice gains as it continued to increase on the daily scale. It faced resistance and briefly paused buying.
Reiterating buying actions today, the crypto is finding it difficult to push higher as volatility drops. A successful weekly close above the $0.4 level (previous monthly high) should signal a breakout, which is capable of reversing the trend.
Technically, the monthly bounce may have brought the bulls back in action over the past week, but looking at the broader market trend, ADA is still positioned in a downward range from a mid-term perspective.
Upon that, it has formed a double-bottom pattern above the $0.3 level on the daily timeframe. If this bullish reversal pattern plays out, ADA may rally hard to the yearly top before breaking out to a new milestone.
Currently, there are no signs of bears in the market due to a rise in the demand level. If they manage to regain control, we can expect drops until the market finds solid ground. For now, the bulls are in charge.
ADA’s Key Levels to Watch
While the bulls are not giving up yet, they aim to reclaim the previous monthly high mentioned above. If they succeed, the higher resistance levels to watch are $0.45 and $0.49.
The $0.3 level is currently acting as support for the market. If the price drops below this level, the bears may retake the $0.27 support level (last month’s low) before breaking lower $0.25.
Key Resistance Levels: $0.40, $0.45, $0.49
Key Support Levels: $0.30, $0.27, $0.25
- Price: $0.355
- Trend: Bullish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.
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