CARDANO PRICE ANALYSIS & PREDICTION (February 28) – ADA Advances Bearish With a 5% Daily Loss, Will $0.5 Continue to Hold?
The past few days have been more painful for ADA’s traders following a back-to-back loss since the start of the week. It just extended bearish with another break down, posting over 25% decrease in the past week.
Before the latest breakdown, ADA was trading sideways after seeing a small recovery from a recent crash. It tried to resume bullish but failed due to volatility contractions, which later caused a multiple rejection.
As supply level increases, the volatility expands to the downside and the price drops. The $0.65 support level failed to contain the selling pressure and the price broke down to the $0.58 level today.
This has generated a lot of panic today while sellers continue to take charge. Meanwhile, millions of short positions have been liquidated on the futures. Spot traders are currently counting their losses but are still hopeful of a major recovery when the market picks up again.
Looking at the price actions, the target level to watch for this breakdown is $0.40 in the near term. In fact, the price can drop as low as $0.35 if the supply level continues to increase. But looking at the setup, the monthly low will likely hold. A drop off this low could fuel a big collapse.
ADA’s Key Levels to Watch
The recently broken $0.65 level is now considered as resistance. While there’s no signs of buying at the moment, a strong push above the broken level could bring us back to the $0.83 and $0.988 resistance levels.
On the way down, the key levels to watch right now are $0.56 and $0.5. A breakthrough at these levels could plummet the price to $0.4.
Key Resistance Levels: $0.65, $0.83, $0.988
Key Support Levels: $0.56, $0.5, $0.4
- Price: $0.63
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.
