The crypto market has taken some hits in recent days. Cardano is no exception and lost 15% of value in 4 days. The price has now reached support again, which brought the price to $0.75 last time. Let’s look at the graphs.
The three most important price levels
We’ll start this analysis as usual with a look at the weekly chart. This allows us to look far back in the price to extract the most important price levels. These are shown in the chart below as two red zones and a blue line at $0.746.
The red zones are price levels that have often caused price changes in the past. This also applies to the blue line. It is therefore good to have these price levels clear in advance, if the price ever returns here.
The coin is now above the lower red zone, just below the blue line of $0.746. The latter has its origins in a previous low point and is currently providing the most resistance. If this level is overcome, there appears to be little resistance to take the price to the upper red zone.
This is just easier said than done. Since Cardano was rejected at the blue line, the coin has fallen quite a bit. This brought ADA to small blue support (around $0.57) that looks very important in the short term. And to see this better, let’s look at the daily chart.
Upward trend still intact
Below each candle is not for 7 days, but for 24 hours. This allows us to better analyze the movements of the past few days. Here we see the blue zone better, but also the current upward trend of ADA (shown with orange arcs).
The price continues to reach higher highs and higher lows at very logical price levels. If this upward trend continues, it seems only a matter of time until ADA returns to a price of $0.75. It has already been achieved twice, but for a third time this blue zone must remain strong.
It is good to note that this is a logical level to set the next higher low (in the lower term). The only thing we have to pay attention to is that ADA does not end up under this blue zone. So far, the price even seems to be reacting, but time will tell whether this is not a temporary rebound. Therefore, keep a close eye on these levels.
