Most top altcoins have been relatively calm for the past three weeks, including Cardano which is now in a consolidation phase. However, the buyers are still in control. A surge from this phase would determine where it would head next.
Following last month’s rally, which brought Cardano to a seven-month high of $0.42 earlier this month, the crypto encountered rejection and marked that high as key resistance.
The price fell and entered a consolidation phase. While buying pressure is temporarily suspended, ADA is gathering momentum for the next price movement on the daily chart. More price increases can be expected if this phase serves an accumulation period in the near term.
Meanwhile, it has managed to stay above the $0.34 level, which has been serving as support during this phase. Losing this support may result in a serious dip, which is capable of rolling the price back to $0.27.
Should that come into play, ADA may retest the falling wedge that broke during last month’s rally. Looking at the current price actions, the next direction of the market is yet to be ascertained.
For now, Ada’s trend is technically neutral-bullish on the daily chart. As long as volatility shrinks, the price will remain stuck under $0.4 until it finds a breakthrough.
ADA’s Key Levels to Watch
ADA has rejected the $0.395 resistance levels thrice over the past two weeks. If the price flips this resistance to the $0.42 level, the next resistance level to watch for a test is $0.46 – marked as a yearly high in April.
On the other hand, a drop below the $0.34 level could trigger selling to $0.30 before testing the important $0.27 level. The last defence line for the bulls lies at $0.24.
Key Resistance Levels: $0.395, $0.42, $0.46
Key Support Levels: $0.34, $0.30, $0.27
- Spot Price: $0.385
- Trend: Neutral-Bullish
- 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-november-27-ada-continues-to-consolidate-amid-volatility-drops-still-up-5-weekly/