After just rising above by only 2.2% in the past seven days, Cardano yet again plunge nearly 4.62%. The asset is trending within the strong support levels from past a week and accumulated selling volume showcases more possibility of a price drain than a notable rebound.
No doubt the asset in the short time frame has attempted a slight rebound from the lows, yet in the long term the ADA price is heading to test the lower levels.
The Cardano price following a rejection from the descending channel plummeted in 2x speed. And despite a couple of attempts to range above and sustain at $1.5, it eventually got rejected each time. Moreover, the asset went on to test the lower, crucial support at $1 and interestingly, its trading within these levels from past 10 days.
The consolidation may be continued for somemore time until a huge influx of volume floods and escorts the price above support. Or else bear drag down the asset below $1.
As seen in the chart, after trending within the huge descending parallel channel for nearly a month, the asset showcased a possibility of a trend reversal. However it was just a fake one which drained out later.
However, with a v-shaped plunge and further consolidation, the asset has formed a bearish flag. And hence a huge bearish plunge awaits the ADA price rally in the next 24 to 48 hours.
Moreover, there are not strong support levels to hold the price strong and therefore if broken towards the south, the price may eventuall hit the lower support at $0.73 initially.
Also the trading volume has dropped massively while the selling volume is also very negligible. And hence just a slight influx of the buying volume may flip entire scenario but the bulls are required to enter to support the uptrend if any.
Pivot Levels To Watch
- Resistance: $1.0260 and later at $1.0330
- Support: $1.0190 and later at $1.0120
As the resistance and support levels are extremely close, the volatility could remain pretty much low eliminating the possibility of drastic fluctuations and trend reversals.
