Cardano lost crucial support following the weakness of bullish actions and lack of interest. The bears continued gaining market control after five months of shrinking volatility. Nonetheless, the price has increased by 14% over the past seven days with a decent rebound.
Earlier this month, Cardano’s price dropped below the critical $0.4 level after struggling to regain momentum for months. This vital level that acted as yearly support has now turned into resistance due to a decent breakdown.
It later found new support at the $0.33 level and made a quick retracement. At the time of writing, the price is testing the mentioned resistance after a small rejection. The daily candles are also becoming choppy by the day, suggesting a potential selloff.
If this bearish signal plays out, we can expect a continuation of the trend in a short time. This could probably drop the price as low as the $0.3 price level, as indicated by the white arrow down on the daily chart.
However, there’s still room for a short-time buy toward the white descending resistance line before a sell is initiated – shown in the orange arrow down on the chart. This is what we should expect in the following days of trading. Cardano looks bullish on the inter-day trading, but the long-term bearish trajectory is still much valid.
Cardano Price Analysis (ADAUSDT) – Daily Chart
Considering the key levels to pay attention to if Cardano resumes sell actions, the closest support for now is the $0.366 break level on the lower time frame. Then followed by the recent holding support level of $0.33. A drop below it could send the price to a new low of around $0.3 level.
In case of further increase, a resistance level can be found at $0.43, right inside the grey supply zone. The next resistance to consider above this zone is the $0.48 level, located at the descending resistance line.
If ADA can successfully break this resistance line to the $0.52 level, we can start to consider a complete bullish reversal. It would become more valid if the price could hold firm above the previous $0.43 resistance level.
Key Resistance Levels: $0.43, $0.48, $0.52
Key Support Levels: $0.366, $0.33, $0.3
- Spot Price: $0.405
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
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Image Source: aleksandrasova/123RF // Image Effects by Colorcinch
