Analysis

Cardano (ADA) price below $1, where is the next major support?

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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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.