Cardano made a quick reversal after testing the $0.42 level on Feb 15. Following a series of drops, it further broke down crucial support this week and now looks poise for more downtrend.
The past weeks of drawdown have turned some major support levels into resistance as ADA continues to look for a solid level to suppress selling actions.
In an attempt to do that, it lost another crucial support level at $0.345 this week. That support was supposed to act as a solid defence line for the bulls. But unfortunately for them, the price rolled straight to test the January pullback level of $0.32 – now held as a weekly low.
It quickly bounced off that level and retested the lost support as resistance. The bulls are likely to suffer more losses soon.
Meanwhile, the breakdown has not just triggered a double-top formation but also confirmed a continuation of the downtrend that started two weeks ago. A big sell-off should be expected in the next couple of days.
Validating an uptrend for this market, the price would need to climb back above the previously lost levels, especially above the February resistance level where it initiated short. It currently appears weak across the major time frame.
Cardano’s Key Levels To Watch
ADA is sitting on a weekly support level of $0.325. If it further loses this support, the potential drop level to watch is the last December breakdown level of $0.3. It will navigate the $0.27 support if the level fails to suppress selling pressure.
A recovery above this week’s breakdown level could fuel an increase to $0.376 if the buyers show strong commitment. The major resistance level to watch for more recovery is $0.4 and potentially $0.42. The area of interest to keep in mind is $0.44 if the price breaks higher.
Key Resistance Levels: $0.345, $0.376, $0.4
Key Support Levels: $0.325, $0.30, $0.27
- Spot Price: $0.338
- Trend: Bearish
- Volatility: Moderate
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Image Source: ra2studio/123RF // Image Effects by Colorcinch
