While Cardano looks to catch more gains, the price is stalled around key resistance after past weeks of a massive recovery. The bullish trend remains intact, but it may lose momentum if the market fails to show more strength.
ADA has remained a bit calm lately due to a low buying volume in the market. However, it has managed to close the month of January on a high note.
Throughout that month, Cardano saw an impressive recovery and registered a notable 50% gain to mark a multi-high at $0.4 in the past week. Since then, the price has been struggling below that level, failing to extend upward movement.
It has lost a few cents today and might drop more in the coming hour. The recent behavior of the market is causing serious indecisiveness among traders. The sellers, on the other hand, are still in disbelief. The next direction of the market looks so dicey at the moment.
A surge above the marked multi-high will validate a continuation and pave way for a more upward rally. It is important to note that there are a lot of supports left behind. A potential retest on the channel still stands.
The bottom line is that the trend has changed from a short-term perspective, but the price needs to increase above the $0.6 resistance level to confirm a complete reversal.
Cardano’s Key Levels To Watch
As the price stays up, the daily volume indicator keeps decreasing for weeks. The potential support levels to consider for a downturn are $0.35 and $0.33. There is also support at $0.3 if those levels fail to provide a rebound. More levels are located at $0.27 and $0.24.
An extension of the existing trend could make the price touch $0.44 and maybe $0.482 in the long run. If ADA pushes higher, the 0.5 and $0.52 resistance levels will be next.
Key Resistance Levels: $0.4, $0.44, $0.482
Key Support Levels: $0.35, $0.33, $0.30
- Spot Price: $0.38
- 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: thomaseder/123RF // Image Effects by Colorcinch
