Cardano’s market structure has turned bearish following its recent drop below $0.45. The resistance just above may hinder buyer efforts to regain momentum.
Last month, Cardano (ADA) witnessed a decline in its DeFi and NFT sectors, along with decreased user activity. The token’s price fluctuated between $0.45 and $0.685, forming a short-term range. Over the next week or two, there’s a possibility of a consolidation around the $0.5 level. However, until $0.568 becomes a support level, bullish momentum may remain limited.
Cardano Price Analysis
On the one-day chart, the past five months have shown a consistent range formation, with ADA struggling to break out. The prospects for ADA’s upward trend in Q2 2024 dimmed significantly after it dropped below the critical support level of $0.568, which also marks the mid-range value. Currently, the price is hovering near the range lows once again, encountering resistance at the imbalance zone.
The Relative Strength Index (RSI) has remained below the neutral 50 mark for nearly six weeks, indicating persistent downward momentum in ADA’s price. Moreover, the On-Balance Volume (OBV) has also slipped below a crucial support level, indicating significant selling pressure.
Considering these indicators collectively, the Cardano price prediction leans towards further downside movement, with $0.4 emerging as a potential key demand zone.
Cardano Price Analysis: Liquidation Heatmap Points to Key Levels
The liquidation heatmap highlighted $0.483 and $0.527 as the next areas of interest for Cardano (ADA) price movement. With liquidity at $0.45 already absorbed, a potential move towards the $0.5-$0.52 region seemed probable.
On the downside, the $0.41 level also showed a significant concentration of liquidation levels. As a result, the $0.41-$0.51 range is expected to be where Cardano may trade throughout the week. These levels will likely serve as important zones to monitor for ADA’s price action.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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