Following the recent bearish market sentiment, Cardano’s ADA lost the key psychological support level of $1. In case this level is not recovered by today’s daily close, ADA will record a full candle body below $1 for the first time since February 2021 (!).
Key Support levels: $0.84, $0.68
Key Resistance levels: $1, $1.2
Over the past month, ADA was trading amid the $1 mark. Despite two wicks below in January, the price action and the daily candles were above or around the significant support line.
If today’s candle closes at current levels (~$0.93), we can expect the $1 to turn into strong resistance after being strong support for so long.
This is a significant break of the market structure for ADA and signals that the price can drop much lower in the next future. The closest key support levels are found at $0.84 and $0.68.
Technical indicators
Trading volume: Volume has held steady, but sellers have had the upper hand over the past two weeks as the price continues to decline.
RSI: The daily RSI is quickly approaching the oversold area, and ADA may see a temp relief once it hits one of the key support levels indicated above (in case support holds).
MACD: The daily MACD is bearish and gaining momentum. This is terrible news for ADA which is likely to continue south in the near term.
Bias
The current bias is bearish, and losing the $1 support is a major red flag to any remaining bulls. Watch for today’s daily close – Sunday – which is also a weekly candle close.
Short term prediction for ADA price
If today’s candle closes below $1, expect to see ADA heading towards the key support levels at $0.84 and $0.68. The current price action is showing no signs that ADA may come back up at this time. Therefore, it is better to be patient and wait for a more comfortable entrance at a lower point.
