Cardano’s ADA recovery phase appeared ended following a recent rejection. It has formed a bearish pattern on the lower timeframe and is now looking set for a decrease, but selling volume seems low at the moment.
The past 8 days have been a sigh of relief for Cardano’s bulls due to a recent recovery. However, it seems to have ended with a decrease in the last few hours, although not much yet.
It has formed a double-top pattern on the 4-hour chart to signal a potential drop. This pattern serves as a continuation of the existing lower low and lower high formation on the daily chart.
If this bearish pattern comes into play, the coming week might lead to another meltdown for ADA. The $0.45 level that held as support last week is likely to pose a threat to the bears on their way down.
A crack below this holding support could pave the way for more drawdown until it finds another solid ground for a recovery.
On the other hand, the buyers are trying to regain control but their commitments are not enough to bring them back at the moment. But as it stands now, the bears are not giving up as they prep to release another pressure in the market
ADA Key Levels to Watch
Following the latest sell signal, there’s a minor support at $0.48 before dropping to $0.465. A crack below the current holding support could activate a drop to $0.43. Below this level lies at $0.4.
Should the bulls step back to sustain pressure above the $0.54 resistance level, we may see an unexpected surge to $0.58. The next level to watch for an increase would be $0.617. But right now, such a scenario does not look realistic.
Key Resistance Levels: $0.54, $0.58, $0.617
Key Support Levels: $0.465, $0.43, $0.4
- Spot Price: $0.5
- Trend: Bearish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Source: https://nulltx.com/cardano-price-analysis-prediction-february-6-ada-preps-for-another-drawdown-as-it-signals-sell-on-lower-timeframe/