Cardano maintained a bullish long-term outlook but technical analysis suggested that investors need to be prepared for another ~20% drop.
retested a support level at $0.58 on 20th March and bounced higher. This pushed ADA to retest the $0.63 resistance zone, which had served as support just a few days earlier.Earlier this month, ADA broke out of a 3-month range whose highs were at $0.68. The $0.63-$0.68 region was a resistance zone from the 4-hour chart’s price action back then. When retested as support a few days earlier, the bulls failed to defend it.
Hope is not lost for the bulls. This breakdown saw the 61.8% Fibonacci retracement level retested. The $0.586 and $0.525 levels were crucial support levels. A drop below $0.447 would indicate a downtrend was in play on the 12-hour and daily timeframe. The OBV trended downward over the past ten days. The RSI has been below neutral 50 since the 15th of March when ADA dropped below $0.7. This signaled that further drops in price were likely.AMBCrypto’s analysis of the liquidation levels heatmap data showed that there were two regions of interest. The $0.52-$0.54 area and the $0.81-$0.835 area could prove pivotal for ADA in the long run.Therefore, a drop to $0.52 to collect this liquidity was expected.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.Akashnath is a Chemical Engineering graduate deeply fascinated by Technical Analysis and the crypto markets and enjoys studying price movements and trying to find patterns.Subscribe to get it daily in your inbox.
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