Following the recent bearish sentiment in the market, Cardano (ADA) has lost the $1 psychological support. If this level is not restored by the end of today, ADA will record a close below. First $1 from February 2021( !).

• Major support levels: $0.84, $0.68
• Major Resistors: $1, $1.2

For the past month, ADA traded at $1. Although the price created two long wicks below in January in response to this level, the price failed to initiate a rally.

If today’s candle closes at current levels (~$0.94), we can expect $1 to turn into solid resistance after being strong support for a long time.

This would mark a break in the ADA bull market structure and signal that the price could go much lower going forward. The next major supports are at $0.84 and $0.68.

 Source: TradingView

Technical indicators

Trading Volume: Volume has been stable but sellers have been more dominant over the past two weeks with prices continuing to fall.

RSI: The daily RSI is fast approaching the oversold territory and ADA could rise in the short-term if it touches any of the key support levels provided above.

MACD: The daily MACD is falling and gaining momentum. This is a bad sign for ADA, which is likely to continue moving lower in the near future.

Source: TradingView

Perspectives

The current bias is bearish and the loss of the $1 support bodes bad for the bulls. Keep an eye on today’s daily close – Sunday – as well as the weekly close.

Short term prediction

If today’s candle closes below $1, expect ADA to move towards the key supports at $0.84 and $0.68. The current price action gives no indication that ADA can recover at the moment. Therefore, it is best to be patient and wait for a lower level entry point.

Disclaimer: This article is for informational purposes only, not investment advice. Investors should inform themselves carefully before investing

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