Cardano encountered significant selling pressure following a notable rejection at the $1.3 resistance region, resulting in a sharp decline.
However, the price has now reached a critical support level, suggesting the potential for a bullish consolidation phase in the mid-term.
Technical Analysis
By Shayan
The Daily Chart
Cardano recently failed to breach the substantial $1.3 resistance zone due to heightened selling pressure, driven mainly by participants capitalizing on the distribution phase and opening short positions.
This rejection led to a decline, with the price finding support at the crucial $0.8 level, where a bullish rebound has already occurred.
The price range between $0.8 and $1.3 represents a critical consolidation zone, with buyers likely defending the $0.8 threshold.
A bullish retracement phase toward the $1.3 mark is anticipated over the mid-term.
The 4-Hour Chart
The rejection at $1.3 is reflected on the 4-hour chart, where significant selling activity pushed the price downward.
This correction aligns with the typical behavior of a healthy bullish trend, allowing for profit-taking and market stabilization. Cardano’s price has landed within a robust support region, defined by the 0.5 ($0.8) – 0.618 ($0.7) Fibonacci levels.
This area is expected to be a strong defense, preventing further declines. A bullish rebound and consolidation phase toward the $1.3 mark appears likely in the mid-term. With substantial support holding, Cardano could soon resume its upward trajectory, reinforcing the bullish sentiment.
Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).
LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.