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Cardano faces a critical resistance level at an important Fibonacci extension, as an expert analyst mentions crucial support areas.
Cardano ($ADA) is experiencing a sharp 10.4% drop in the last 24 hours, with the price now hovering around $0.2503. The 24-hour trading range has remained between $0.2284 and $0.2825, highlighting the significant downward pressure on $ADA. This performance is in stark resemblance to the broader crypto market, with Cardano’s performance over the past 7 days showing a 22.8% loss alongside a 30.5% decrease over the last 14 days.
Notably, compared to major market leaders like Bitcoin and Ethereum, $ADA has underperformed, showing a 1.5% decline versus Bitcoin. This signals the persistent struggle for Cardano amid broader market declines. However, the question remains if Cardano finds its footing or if the bearish trend continues to dominate.
What’s Next for Cardano?
Cardano is currently experiencing downward pressure, with its price below the 0 Fibonacci extension level at around $0.34. This now marks a key resistance level for $ADA, where buyers must reclaim for a surge upwards. If the price continues to hold below this level, further downside may emerge, with the $0.22 level acting as the next support zone.
The current Average True Range value of 0.02559 indicates accelerating volatility. This further suggests that $ADA’s price action could continue to fluctuate within the established ranges unless the ATR becomes flat.
Cardano’s next significant hurdle remains the 0 extension at $0.3449. If $ADA fails to reclaim the 0 extension, the bearish trend is likely to persist, and the price could continue to test lower levels.
If Cardano breaches this resistance, the next liquidity zones exist at $0.37 and $0.38, aligning with the 0.236 and 0.382 Fibonacci retracement levels, respectively. These levels have previously acted as resistance and would serve as crucial barriers for any potential upward trend.
Here are the next Cardano Support Levels
Analyst Ali Martinez has provided additional insights into Cardano’s key support levels, crucial for maintaining its price stability in the current market environment. The first level of support lies at $0.249.
If Cardano continues to face downward pressure, the next key support area would be around $0.115, followed by $0.053, which represents the lowest boundary. These levels could help determine if the downtrend persists or if $ADA manages to stabilize.
On the resistance side, Cardano faces immediate challenges at the $0.543 level, an important hurdle for the coin’s price. A further resistance zone and final target exist at $1,183.