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Cardano is nearing a key support level, with bearish signals from technical indicators. Where’s ADA headed?
Cardano has seen a slight decline over the past 24 hours, currently trading for $0.378, reflecting a 0.8% drop within a daily range that fluctuated between $0.3775 and $0.3898. Despite a modest upward push earlier, Cardano’s performance over the past week remains negative, with a decrease of 18.2%. Over the last 14 days, it has seen a further dip of 15%, indicating a broader market trend that has put pressure on its price.
While Cardano’s market cap stands at $13.8 billion, indicating its solid position in the market, its recent price movement and downward trend signal a lack of buying momentum. The 24-hour trading volume of $500 million highlights active trading, but the persistent downward pressure suggests that traders are cautious.
Cardano is Testing Key Support Levels
Notably, Cardano is currently experiencing a downward trend, with the price testing key support levels. The recent Fibonacci retracement levels indicate that the price is approaching the 1 level, currently at $0.3714, which has historically acted as a critical support zone. If Cardano fails to hold above this level, the next major support lies around the $0.30 region, marked by the extended Fibonacci levels.
Notably, the technical indicators are also showing bearish signals. The Chande Momentum Oscillator (CMO) is currently at -41.68, indicating that Cardano is in oversold territory. It also suggests that there could be some short-term relief if buying pressure picks up.
However, the overall downtrend remains intact, with the price well below the 50% retracement level of $0.427, making higher resistance at the $0.44 and $0.46 levels significant. For any bullish momentum to develop, Cardano needs to break above these resistance levels, but first reclaim the 50% Fibonacci retracement zone to confirm a reversal.
ADA Weekly Update
On the social commentary end, Crypto Crew University has provided an important weekly update on Cardano’s price movement, noting that the price is approaching a key long-term support level (S1) at $0.3241. This level will be crucial in determining whether Cardano can maintain its position or if it will face a breakdown. The analyst suggests that traders should watch this support zone closely.
Despite this critical support, both the Stochastic RSI (SRSI) and the Relative Strength Index (RSI) are showing bearish signals, indicating continued downward pressure. This raises concerns about the strength of the support level and whether it will hold or break in the coming weeks.