Price Analysis
4 months ago

ADA Crashes 14% Weekly, Can it Drop to $0.45? Three Things to Watch Next (Cardano Price Analysis)

Duo Nine Jan 19, 2024 08:15

Cardano’s correction continued this week and may not stop any time soon.

Key Support levels: $0.46, $0.40

Key Resistance levels: $0.60, $0.65

1. Rejection at Key Resistance

With ADA unable to break above 60 cents, the price resumed its downtrend and is now on its way to the key support at 46 cents. This confirms the bearish momentum, and buyers may not return until much later.

Chart by TradingView

2. Momentum Favors Sellers

Momentum indicators show that sellers have the upper hand right now. ADA lacks the buy volume to turn around this downtrend and may only attempt a recovery once the key support is re-tested.

Chart by TradingView

3. MACD is Bearish

The 3-day MACD is bearish, and its downward momentum has accelerated in this past week. This can be clearly seen on the MACD histogram, which has been making lower lows since the bearish cross.

Chart by TradingView

Bias

The bias for ADA is bearish.

Short-Term Prediction for ADA Price

Buyers are absent and may only return once ADA is at a significant discount. This seems most likely to happen when the price arrives at the 46 cents support.

SPECIAL OFFER (Sponsored)
Binance Free $600 (CryptoPotato Exclusive): Use this link to register new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER 2024 for CryptoPotato readers at Bybit: Use this link to register and open a $500 BTC-USDT position on Bybit Exchange for free!


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.
Share This Article
Duo Nine

Duo Nine is crypto educator and a seasoned technical analyst with over seven years of experience in price action trading. After buying his first Bitcoin in 2014, Duo never left this space. He also has a cool crypto community on Discord with over 4,000 members where he posts charts, opinions on the market and guides new members. Contact: Twitter | Community