Here Are 3 Key Cardano (ADA) Levels You Need To Watch

AnalysisHere Are 3 Key Cardano (ADA) Levels You Need...



Arman Shirinyan

Cardano bulls would need to watch three important levels in order not to miss crucial market moves

Cardano’s price performance in the last few months has been depressing. The asset has lost more than 25% since November and has not been able to gain enough momentum to return to the pre-FTX catastrophe levels. However, the most recent recovery might be a sign of an upcoming reversal.

In the last 16 days, Cardano has gained approximately 5% to its value from the local low and reached the first short-term resistance level in the form of the 21-day moving average, which usually acts as the first barrier for an asset moving in a prolonged downtrend.

Cardano
Source: TradingView

In the case of a successful breakout, ADA will most likely start moving toward the next resistance level in the form of the 50-day moving average. In the case of a breakthrough, a trend reversal would be way more likely.

The next key threshold to watch would be the $0.3 support level, which has been the foundation for every upward move for ADA in November. Even failure during such a breakout attempt would not make a recovery for ADA in the future impossible. Thanks to the resilient support level, Cardano might enter a prolonged consolidation, but not break down even further.

Additionally, investors should watch descending volume profiles — a sign of fading trends. Decreasing volume usually reflects the inability or unwillingness of traders and investors to provide more selling pressure and push the price of an asset down.

According to profitability indicators, Cardano has been severely oversold for months. In order to keep up the pace, bears will have to find additional funding for their shorting operation, which might be a problem during the overall cryptocurrency market recovery.



Learn more

Latest news

Bitcoin pumped 43% in January 2023! What to expect in February

Tune in to The Market Report at 12:00 pm ET on Tuesday, Jan. 31, to watch our...

Bio-engineering firm touts plan to ‘de-extinct’ dodo bird

A genetic engineering company has bold plans to “de-extinct” and “re-wild” the dodo bird — centuries after the...

Wormhole Wins Vote to Be Uniswap’s Designated Bridge to BNB Chain

Uniswap aims to deploy its V3 decentralized exchange on BNB Chain before its business source license expires on...

Meta Stock Picking Itself Up; Will Earnings Push It Higher?

Meta Platforms (META) will announce its fourth quarter earnings results today after the market closes. Also today, the...

Yamana Gold’s $4.8 Billion Takeover Wins Backing from Investors

(Bloomberg) -- The biggest gold acquisition in nearly a year is a step closer to reality after investors...

Fixing Water Systems In East Africa Before Problems Get Out Of Hand

When we last met Sarah Evans and Kathryn Bergmann, they were in the early days of running their...

Must read

Bitcoin pumped 43% in January 2023! What to expect in February

Tune in to The Market Report at...

Bio-engineering firm touts plan to ‘de-extinct’ dodo bird

A genetic engineering company has bold plans to...

Wormhole Wins Vote to Be Uniswap’s Designated Bridge to BNB Chain

Uniswap aims to deploy its V3 decentralized exchange...

You might also likeRELATED
Recommended to you