Cardano has continued to maintain a downward movement since the price fell in August 2022. It recently found support and corrected towards last month’s break level with a 12% weekly gain.
The past days of trading have been quite interesting for Cardano following a recovery from $0.24, which currently acts as the monthly support.
Following the ongoing weekly correction, which brought the trading price to $0.27 at the time of writing, ADA is most likely to initiate a fresh decrease once it retests the last month’s breakdown level of $0.30. The price may increase further if this level fails to suppress the correction.
However, it is vital to note that ADA is bearish and has shown no sign of reversal. It is yet to find a bottom to activate a bullish trajectory.
The descending channel pattern on the daily chart below indicates that the bears are still in control. A notable surge above this channel would trigger a buy from a short-term perspective. It could lead to a reversal if the price increase above the $0.58 level.
Cardano is currently the top gainer in the crypto market following a 2.8% increase in the past 24 hours of trading. There’s room for more increase if the cryptocurrency continues to gain momentum.
Cardano’s Key Levels To Watch
The breakdown level mentioned above remains a key resistance level for the ADA/USDT pair.
If this level fails to reject price actions, we may see a push to $0.33 – which could trigger a breakout from the channel. The $0.378 resistance level is the next target if it finds a rebound above the channel.
While the $0.24 level acts as support, the level to consider for a breakdown is $0.2 if Cardano loses momentum. A continuous bearish could slip the price lower to $0.187 until it finds a bottom.
Key Resistance Levels: $0.30, $0.33, $0.378
Key Support Levels: $0.24, $0.20, $0.187
- Spot Price: $0.27
- Trend: Bearish
- 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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