After witnessing a drag down in the past week, Cardano found temporal support and bounced off it yesterday. The price has increased by 10% today with an attempt to close strongly bullish on the daily.
There is a lot of positive news surrounding Cardano lately. It was moving on a downward slope recently but now rising again after a bounce. However, it is currently following a bullish sentiment.
Today’s positive change has brought a significant volatility inflow for Cardano, forming a bullish engulfing on the daily chart. This shows a sign of strength as the bulls regain their spot.
Though the bounce typically looks like a retest of last week’s initial drop level of $0.4, which could initiate another sell action if the level faces rejection.
But the thing to consider here is that Bitcoin has once more climbed above the $22k level following the positive outcome of January’s CPI release. As a result, Cardano may see more upswing if BTC advances higher in the coming days.
If such a scenario occurs, ADA may suspend the correction and look for more gains in the next few days. The price is down by a weekly 3% and remains the 8th largest cryptocurrency with a market cap of $11 billion at press time.
Cardano’s Key Levels To Watch
Due to the latest increase, ADA is just a few levels away from the previous high. If the price rises further, we should expect more actions to come into play. A surge above $0.4 should propel buying to $0.44 and $0.48 respectively.
If the asset rolls back and slips below $0.345, the following support to consider is the $0.326 level before falling to $0.3. There is also a support level at $0.27 if the price continues to fall.
Key Resistance Levels: $0.4, $0.44, $0.48
Key Support Levels: $0.345, $0.326, $0.30
- Spot Price: $0.386
- 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.
Image Source: iuriimotov/123RF // Image Effects by Colorcinch
