Cardano slowly continued its lower lows and lowered high pattern. The latest drop in Bitcoin’s price seems to have activated a sell action for the 9th largest crypto by market cap. It has flashed a drop.
Moving from little-to-no volatility over the past few days, Cardano is beginning to show a sign of weakness, and it appears a fresh drop is lurking around the corner. The selling volume is still looking low at the moment. But it is expected to increase in the coming days.
Following the past week’s break and retest at $0.44, down to the current trading level of $0.305, it has gathered liquidity since November 10 to nuke the lower price. We can see that the volatility has continued to shrink.
Such choppy price action is mostly followed by a big candle, which is likely to tap a lower price level at around $0.23 in the next few days. We can expect a notable bearish candle as soon as the price drops off the last week’s low – $0.295.
In summary, the asset is yet to find a bottom. The price would continue to collapse until the market reaches a state of despondency before it can make a strong bounce. The bears are not letting off the hook at the moment.
Cardano Price Analysis (ADAUSDT) – Daily Chart
Looking at the market structure from the break and retest level downward, Cardano has held the recovery level of $0.378 as a resistance level. It has also established a resistance level at $0.33 after it failed to retake it last week.
However, the price is currently facing down. Due to the last 24 hours’ drops, which send a bearish signal on the lower time frame, the closest support level for this potential drop is $0.285. The $0.231 mark is another level to keep in mind for an extension, followed by $0.187.
Key Resistance Levels: $0.33, $0.378, $0.43
Key Support Levels: $0.285, $0.231, $0.187
- Spot Price: $0.304
- Trend: Bearish
- Volatility: Low
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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Image Source: thomaseder/123RF // Image Effects by Colorcinch
