Cardano 15% Off Amid Massive Sale, Here's Where It Can Find Support

Bitcoin has dropped below the $40k mark in recent hours. Cardano has seen a strong move on lower time frames over the past week as it rallied from $1.23 to $1.63 and appeared to be breaking out of the downtrend. However, at the time of writing, the price has declined and is below the trendline resistance since late November.

Cardano drops 15% amid widespread sell-off, here's where it could find 5 . support

Source: ADA/USDT on TradingView

The recent drop from $1.63 reached the $1.20 support. The short-term bounce from $1.069 to $1.63 is used to plot the Fibonacci retracement levels (in white). At time or as of writing, the 70.7% retracement at $1.23 has been retested as a resistance.

However, the price is in the long-term demand zone. Therefore, a bullish reaction, even if it is short-lived, can be expected.

On top of ADA’s previous rise to $1.63, $1.28 has acted as resistance. This could be an area where sellers are once again entering with strength.

Theoretical basis

Cardano drops 15% amid widespread sell-off, here's where it could find 7 support

Source: ADA/USDT on TradingView

The RSI has dipped below 30 and is oversold on the hourly chart. This could see a slight pullback and a small, brief rally in the price of ADA.

OBV has been trending down during ADA down from $1.63 to reflect strong selling volume. However, over the past few days, buying volume has appeared. This is a response that can be expected in an area of ​​demand. The support levels in the timeframe are above the $1.20 area and so is the $1, so a reaction at this area is expected. However, this does not signal that buyers are in control of the market.


Cardano appears to have broken out of a longer-term downtrend last week. Bitcoin is also hovering above the support at $40.5k, but over the past few hours, this level has given way to bearish pressure. It remains unclear where this downtrend could reverse. In the short term, the $1.28 level is a key level where ADA could retest and fall again, or consolidate and turn support.

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