Cardano lost buzz in December and initiated a drop below the $0.6 level. It attempted this level last week but the price fell back and continued to dip. Now facing a minor support level after shedding a 5% loss in a week.
ADA’s short-term bullish ended last month after testing the high of $0.68. It formed a double-top pattern at this high level and started to depreciate slowly. The sellers mounted pressure last week and the price fell to $0.465 – the current monthly low.
It bounced back above the important $0.6 level that cracked during this month’s crash and quickly rolled back due to a rejection. The volatility dropped a bit this week and price actions become choppy.
Despite that, the bearish momentum remains valid on the daily. The $0.4 resistance level that the price broke through last December is about to be retested as key support following the latest bearish setup taking place on the hourly chart.
A lower low and lower high pattern is technically forming on the 4-hour chart and as such, more bleeding should be expected in the coming days.
There are currently no signs of buyers in the market. If they react strongly to the monthly low level, the price may recover well. But from the look of things, the sellers are more likely to stay a bit longer than expected.
ADA’s Key Levels to Watch
In the latest dip, the price is currently facing $0.51. If this price level cracks, the next support to watch for test would be $0.465 before it dips to the key $0.4 support level.
ADA rejected the immediate $0.545 resistance level this week. If it manages to climb above this resistance, the next one to watch for recovery are $0.58 and $0.64. Above it lies the $0.68 resistance level, marked last month.
Key Resistance Levels: $0.545, $0.58, $0.64
Key Support Levels: $0.51, $0.465, $0.4
- Spot Price: $0.524
- Trend: Bearish
- Volatility: High
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-january-18-adas-bears-target-this-key-support-level-after-losing-20-in-a-month/