Cardano (ADA) Price Sinks Below $1; Next Key Levels To Position Your Trades

Brian Bollinger
Updated
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Cardano price

On February 20th, the Cardano (ADA) price gave a decisive breakout from the yearly support of $1. Until this breakdown, this crucial support didn’t allow a single daily candle closing in the past year. Should we expect another freefall in ADA, or do buyers have something up their sleeves?

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Key technical points: 

  • The daily-RSI slope approaches the oversold territory.
  •  Higher price rejection in retest candle highlights bears power.
  • The intraday trading volume in the ADA coin is $1.2 Billion, indicating a 10% hike

TradingView ChartSource- Tradingview

The Cardano (ADA) price has traded above $1 over the past year. This crucial support was resilient even during the crypto bloodbath of June-July 2021 followed by the August rally.

Back to the present, the ADA buyers failed to overcome the $1.2 resistance during the recent recovery rally, resulting in an immediate bearish reversal. The sustained selling pulled the coin price below the $1 support, indicating a 27% loss in the last two weeks.

Following a bearish sequence, the downsloping crucial EMAs(20, 50, 100, and 200) suggest the bears are dominating the field. Moreover, the 50 and 100 EMA acts as dynamic resistance that traders are using to sell on rallies.

Moreover, the Relative strength index(33) slope sliding lower accentuates the aggressive selling in the market.

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ADA Chart Hints Next Support Lies Down 12% ($0.82)

TradingView ChartSource- Tradingview

After yesterday’s breakdown, the ADA price reverted to retest its new resistance. The coin chart displays a long higher price rejection in the daily candle, indicating the support has flipped to support.

If traders maintain the price below the $1 mark, the selling pressure would intensify and plunge the altcoin to $0.82, followed by $0.7.

Resistance levels- $1, and $1.2

Support levels-$0.8 and $0.7

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
From the past 5 years I am working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. Reach out to me at brian (at) coingape.com
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.