As the overall crypto market cuts $40 billion away in the last 72 hours, Cardano had its fair share as it recorded a 5% loss since last week. The bears have stepped back with a potential breakdown of previous support.
After a three-week recovery, ADA encountered resistance at the $0.27 level last week and dropped slowly due to low selling volume. Volatility later increased last weekend and the price fell consistently ever since.
This led the bears back in action as they now aim to claim more lows. The price is currently trading at around September’s support – $0.24.
If the price plunges through this support by the end of this week, the next key target level for the bears would be $0.20 in the upcoming week. As shown on the daily chart, that key target level is located at the lower boundary of the wedge, which has been forming over the past 8 months.
Currently, there are no signs of buying. But if the bulls show a strong reaction to September’s support, we may recover back to last week’s resistance. Even if that happens, ADA must break above the descending wedge before we can start to consider a short-term bullish trend.
The main resistance to watch for a mid-term breakout is $0.45. However, considering the current market structure on the daily, the bears are in control.
ADA’s Key Levels to Watch
While ADA is on the verge of breaking through its previous monthly support of $0.24, the next closest support to keep in mind is $0.22 before testing the wedge’s lower boundary.
On the other hand, a buy from the current trading level could recover the price to the $0.267 and $0.28 resistance levels before flipping through to $0.30.
Key Resistance Levels: $0.267, $0.28, $0.30
Key Support Levels: $0.24, $0.22, $0.20
- Spot Price: $0.246
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.