On March 1st, the Cardano (ADA) price was rejected from the $1 psychological level with an evening star candle pattern. The sellers sank the altcoin back to weekly support of $0.82. Can sellers extend this sell-off to newer levels, or would buyers step in to seize control from them?
Key points
- The ADA price retest the lower lows support $0.83
- A falling wedge pattern governs the ADA price action.
- The intraday trading volume in the ADA coin is $613.70 Million, indicating a 31.6% loss.
Source- Tradingview
On February 18th, the ADA buyers lost their crucial yearly support of 1$ Mark. The sellers pulled the altcoin to the $0.825 level, followed by a retest phase to validate their new flipped resistance of $1.
The renewed selling pressure has slumped the altcoin by 18.3%, retesting the lower low support of $0.82. A breakdown below this mentioned support would indicate a resumption of the downtrend, threatening another 17.6% drop before the price reaches $0.678.
Contrary to the above assumption, a bullish reversal from the $0.86 mark would indicate the traders are accumulating at this dip and would surge the price to immediate resistance of $1.
However, a breakout and sustainability from the falling wedge pattern is necessary to initiate a genuine recovery in Cardano(ADA).
Technical Indicator
The 20-day exponential moving average (EMA) facilitates the sellers in defending the $1 resistance. At the same time, the 50 EMAs act as dynamic resistance in this downtrend.
The Stochastic RSI indicator shows a bearish crossover among the K and D lines, encouraging the sellers to extend the downtrend.
- Resistance levels- $1, and $1.2
- Support levels-$0.82 and $0.68
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/cardano-price-prediction-ada-17-6-percent-downside-risk-bulls-lose-0-82-support-level/