The crypto market recovered above $1 billion, and Cardano rides along with a 9% surge overnight. It trades around last week’s high with a potential break up.
After a slight correction earlier this week, Cardano regained momentum and continued to rally the market in a disbelief state. This bullish continuation was led by the latest rebound in Bitcoin’s price.
From a technical standpoint, the correction was more of a retest of the last week’s surge above the $0.33 level. We can see that the price quickly reacted to that level – though a deeper correction was expected.
If Cardano fails to push above the $0.4 psychological level, a rejection from that level could form a double-top pattern, which may trigger a big sell-off. Such a scenario could bring a proper retracement of the channel’s breakout.
A look at yesterday’s daily candle – which closed so strongly – indicates a high buying volume in the market. If the buyers reiterate actions today, we can expect more surges in volatility.
The price could close above the last week’s high if volatility continues to flow into the market. From a short-term perspective, the price target for this bullish rally is $0.54.
Cardano’s Key Levels To Watch
Cardano does not appear to be taking a break at the moment. The last 48 hours’ price actions show the asset still wants to tap some highs.
In the meantime, the resistance levels to watch for the next leg-up are $0.38 and $0.4. The $0.44 level is the next resistance to keep in mind once those levels are cleared.
If a double-top occurs as mentioned earlier above, the first support level to expect the price is the mid-week rebound level of $0.33, followed by the $0.3 level. The lower support levels are $0.27 and $0.24, where the bullish rally started in late 2022.
Key Resistance Levels: $0.379, $0.4, $0.44
Key Support Levels: $0.33, $0.30, $0.27
- Spot Price: $0.37
- 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: aleksandrasova/123RF // Image Effects by Colorcinch
