After falling to a three-month in the second quarter, Cardano remained calm for a while and slowly recovered 7% in a month. It shows signs of strength and attempts to start the month on a bullish note.
Cardano appeared to have halted bearish after witnessing a serious meltdown in the past months. It tested the channel’s lower boundary and established support around the $0.35 level in May.
The asset began to show signs of recovery but later witnessed a series of rejections due to a low amount of volume inflow.
After that, it bounced off the channel’s lower boundary on Friday, making it the third attempt to resume bullish but the commitment towards buying looks low at the moment. The $0.388 resistance level, which suppressed buying pressure last week is being reapproached following the latest volatility in the global market.
Meanwhile, the price is still in the middle of consolidation, building up a big price movement. A surge through that resistance level could activate a consistent increase towards the channel’s upper boundary in the coming weeks.
In a case whereby the buyers fail to sustain pressure, the price could drop back to find another level for a rebound. Failure to rebound might result in a major crack below the ascending channel.
Cardano’s Key Levels to Watch
As ADA builds up a reversal pattern, the close resistance level to pay attention to is $0.40. After that, the next resistance levels are located at $ 0.42 and $0.44.
If we consider a price drop below the weekly low, a breakdown below the trendline may allow the price to fall to $0.357. From there, the price could further decline to as low as $0.34 before dropping lower to the $0.323 support level.
Key Resistance Levels: $0.40, $0.42, $0.44
Key Support Levels: $0.357, $0.34, $0.323
- Spot Price: $0.38
- 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.
Image Source: niphonsubsri/123RF // Image Effects by Colorcinch
