Chart by TradingView
Cardano broke below major support as bears took over the market.
Key Support levels: $0.38
Key Resistance levels: $0.46, $0.60
ADA lost the support at 46 cents, which has now turned into a key resistance. This is why the price fell by 9% today. Considering the current momentum, the cryptocurrency may make new lows before a recovery can be expected.
This most recent drop took place on increasing volume, which is a bearish sign. It also shows sellers are in full control of the price action, and they may not be satisfied until they reach the key support at 38 cents.
The daily RSI is approaching the oversold area at under 30 points. If ADA falls that low, then sellers could become exhausted, which can provide an opportunity for buyers to return.
The bias for ADA is bearish.
The key support has moved to 38 cents, and bears may aim to take ADA there before buyers return.
