Cardano (ADA), which is preparing to retest its key support level at $0.3389, has reached a pivotal point. In recent trading sessions, ADA‘s price has previously risen above this level and is currently dropping for a second retest thereby raising concerns among investors and traders.
The $0.3389 level is a key support and a successful defence could be a sign of a reversal or renewed bullishness. However, a breach beneath this level can lead to more declines. It is important to note that this article The objective of this article is to determine the importance of Cardano’s $0.3389 level and whether it represents a bullish trend. momentum Technical indicators and market sentiment can be used to keep ADA at or above the key threshold.
ADA, with a capitalization over $12 billion dollars and a volume trading of more than $240 millions, was trading around $0.3462 when this article was written. In the last 24 hours its market capitalization has dropped by 0.68% while its trading volume is down by 26.44 %.
Cardano: Current technical indicators and what they reveal
Cardano, on the 4-hour Chart is currently trading lower than the Simple Moving Average 100 (SMA). It is also experiencing a negative trend in the direction of $0.3389. Due to this negative sentiment, the bears Could continue to exert pressure and drive the price towards this critical level.
The 4-hour Composite Trend Oscillator shows that both the SMA and signal lines of the indicator are approaching the overbought area. This indicates that the drop in price could only be temporary, and that bulls might regain control around the $0.3389 level.
Cardano continues to be below its 100-day SMA on the chart of the day. It is currently attempting a downward move towards $0.3389. The bears, therefore, are in charge and can potentially drive the price even lower.
On the chart for 1 day, the SMA and signal lines of the Composite Trend Oscillator are both below zero, in the Oversold Zone. The oversold zone is indicated by the signal line and SMA lines of the composite trend oscillator. ADA’s price The price could change after $0.3389.
What could happen if the $0.3389 support holds or fails?
The analysis shows that the Cardano price will reach $0.3389 if it reaches this level. support If this level is held, the price could begin to climb towards the resistance of $0.4233. The price may test higher levels if it successfully breaks through this resistance.
Should the price not hold at $0.3389, and the value of the dollar decreases to $0.3389 break The digital asset could continue its downward movement towards the $0.2388 price range if it falls below this mark. The crypto asset’s price may continue to drop if this support level is broken.
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Source: www.newsbtc.com