Cardano Price Ready for Another 15% Correction, Here is Next Support Zone

Cardano is stepping down due to a descending trend.
On 29 December 2022, investors witnessed the latest annual low.
There are no positive signs till the sellers reach the next round level of $0.20.

Cardano has crossed all the thresholds due to the descending trend in FY 2022. Investors are taking huge losses in the portfolio if they buy ADA tokens at yearly highs. The given crypto has declined by almost 80% in the last 365 days. And the market looks weak right now so analysts expect further downside to the current levels.

Sellers turned aggressive at each swing high and subsequently all levels on it turned into important bullish hurdles. This week turns out to be a bad one for investors as ADA has fired a fourth red candle today. Unfortunately, on December 29, 2022, investors saw a fresh yearly low of $0.02396, which may soon provide a bounce.

Trading volume suddenly spiked this week after escaping last week with low volatility. As per overnight data, trading volume reported at $188.6 Million, suggest high weightage of sellers participation in market. This bearish trend may take a pause at the next round level of $0.20 before rapid bounce back.

Cardano fell below the vital support level of $0.30 in mid december, therefore buyers constantly witnessed selling on rise so far. At the time of writing, Cardano price (ADA) trades at $0.2410 mark against the USDT. Meanwhile, market capitalization decreased 1.74% in the last 24 hours, and reached $8.30 Billion.

Following the downtrend line, Cardano price sees extreme weakness until the buyers overcome this bullish hurdle. The oversold RSI is aiming to dive into the power levels again. But the buyers have an advantage as the RSI may leave the lower zone

According to the ADX indicator, sellers may continue selling ADA this week. Besides, the MACD looks flat in the negative zone on the daily price chart.

Conclusion

Buyers should accumulate Cardano price (ADA) above the weekly high to protect themselves from a 15% drop. Interestingly, the oversold RSI may soon break out of the oversold zone.

Support level – $0.24 and $0.20

Resistance level – $0.30 and $0.44

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing