HomeCoinsCardano (ADA)Cardano drops 15% as amid broad selloff, here's where it can find...

Cardano drops 15% as amid broad selloff, here’s where it can find support

- Advertisement -


Bitcoin dropped below the $40k mark in recent hours. Cardano saw a strong move on the lower timeframes in the past week as it rallied from $1.23 to $1.63 and appeared to break out of a downtrend. However, at the time of writing, the price has dropped and was back beneath the trendline resistance from late November.

Cardano drops 15% as amid broad selloff, here's where it can find support

Source: ADA/USDT on TradingView

The recent move down from $1.63 has reached the $1.2 support level. The short-term rally from $1.069 to $1.63 was used to plot Fibonacci retracement levels (white). At the time or writing, the 70.7% retracement level at $1.23 has been retested as a level of resistance.

However, the price was within a longer-term demand area. Hence a bullish reaction, even if it is short-lived, can be expected.

On ADA’s earlier move up to $1.63, the $1.28 level has acted as resistance. This could be an area where sellers once again step in with strength.

Rationale

Cardano drops 15% as amid broad selloff, here's where it can find support

Source: ADA/USDT on TradingView

The RSI had dropped below 30 and was oversold on the hourly chart. This could see some relief and a small, brief bounce for the price of ADA.

The OBV had been in a downtrend during ADA’s fall from $1.63 to reflect the strong selling volume. However, in the past couple of days, it suggested that some buying volume has been present. This is a reaction that can be expected in an area of demand. The $1.2 and $1 area higher timeframe support levels as well, so a reaction at this area is expected. Yet this does not signal that buyers are in control of the market.

Conclusion

Cardano had appeared to break out of a longer-term downtrend last week. Bitcoin was also hovering above a level of support at $40.5k, but in the past few hours, this level had given way to bearish pressure. It was not yet clear where this downtrend could reverse. In the near term, the $1.28 level was an important level where ADA could retest and drop once more, or consolidate and flip to support.



Source link

- Advertisement -
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
462FansLike
76FollowersFollow
4,567FollowersFollow
5,261FollowersFollow
1,579FollowersFollow
2,230SubscribersSubscribe

Most Popular

bitcoin
Bitcoin (BTC) $ 43,822.00
ethereum
Ethereum (ETH) $ 3,105.12
tether
Tether (USDT) $ 1.00
bitcoin-cash
Bitcoin Cash (BCH) $ 339.06
litecoin
Litecoin (LTC) $ 137.53
eos
EOS (EOS) $ 2.66
okb
OKB (OKB) $ 23.26
tezos
Tezos (XTZ) $ 4.48
leo-token
LEO Token (LEO) $ 7.50
cardano
Cardano (ADA) $ 1.19
monero
Monero (XMR) $ 179.56
stellar
Stellar (XLM) $ 0.240142
chainlink
Chainlink (LINK) $ 18.13
huobi-token
Huobi Token (HT) $ 10.02
tron
TRON (TRX) $ 0.068275
usd-coin
USD Coin (USDC) $ 1.00
dash
Dash (DASH) $ 114.04
neo
NEO (NEO) $ 23.20
iota
IOTA (MIOTA) $ 1.04
nem
NEM (XEM) $ 0.117103
zcash
Zcash (ZEC) $ 130.77
maker
Maker (MKR) $ 2,183.32
paxos-standard
Pax Dollar (USDP) $ 0.999839
ethereum-classic
Ethereum Classic (ETC) $ 33.55
vechain
VeChain (VET) $ 0.0646
true-usd
TrueUSD (TUSD) $ 1.00
ftx-token
FTX Token (FTT) $ 46.05
kucoin-shares
KuCoin Token (KCS) $ 20.30
waves
Waves (WAVES) $ 10.69