Cardano opened the week in a neutral mode and remained indecisive for days. It showed signs of strength in the mid-week and slowly regained momentum. However, there’s still room for a decrease if selling returns.
Last week took the market through a serious drawdown, bringing the price to a monthly low of $0.377. This was followed by a brief consolidation into this week after holding that monthly low as support.
The price remained calm above the support for a while and climbed back above the vital $0.4 level that acted as resistance for days. ADA pushed higher in the mid-week but encountered resistance at $0.42 after two consecutive failed attempts.
It retraced and now changing hands around $0.41. The market is not much volatile right now. But we can expect a big price movement once volatility expands. The monthly high would be the key breakout level to watch for more upside movement.
Should ADA fail to initiate more buys as a result of weakness, the price could plunge and navigate the channel’s lower boundary for support. The price must remain within the ascending channel to keep the bulls on track.
A clear drop below this channel will confirm further selling towards the $0.3 level and perhaps $0.25 in the future. As of now, ADA looks bullish, with an 0.1% increase over the last 24 hours.
Cardano’s Key Levels to Watch
The $0.42 resistance remains a key level for buyers to surpass. If they scale through, the immediate resistance levels to keep in mind are $0.44 and $0.463 (the monthly high). The price target for a breakup is $0.482 and $0.5.
If the sellers mount pressure again, especially below the $0.4 level, the price could retest the holding support of $0.376. A crack from here could slip the price to $0.357, sitting on the lower boundary.
Key Resistance Levels: $0.42, $0.44, $0.463
Key Support Levels: $0.4, $0.376, $0.357
- Spot Price: $0.41
- Trend: Bullish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
