Cardano (ADA) is approaching significant support levels that traders and analysts observe for a potential decline in momentum. Latest price movement indicates ADA trading near its short-term support zones, with market data reflecting a delay in the bullish rally compared to earlier times. If these support levels fail to hold, technical analysis indicates the possibility for extensive corrective moves.
According to CoinMarketCap, at the time of writing, the coin is trading at $0.2612 with a 1.06% decrease in rate. The daily trading volume of the token is around $392.21 million, and the market cap of the asset has exceeded $9.42 billion.
Also Read: Cardano (ADA) Moves Sideways: Will $0.25 Hold or Trigger Deeper Corrections?
Technical Indicators Signal Risk of Downside for Cardano
ADA’s price chart reveals a downward momentum. It could climb toward the resistance (yellow) at around $0.262. Assuming the bullish pressure increases, it can send the price up to test the $0.270 range.
If a reversal occurs, the bears might further push down the ADA’s price to the support (blue) at $0.255. In case the downside correction gains more traction, the death cross could form, and likely drive the asset’s price to a low of $0.250 or even lower.
The moving average convergence divergence indicator (MACD) shows the token experiencing a bearish trend as the signal line (orange) is above the MACD line (blue). The relative strength index (RSI) indicates the coin is being oversold as the RSI is below the 50 median.
According to the data given by CoinCodex, Cardano might experience an average price and maximum price of $0.2959 and $ 0.3493 in February. The potential ROI of the coin in the month might be 32.80%.
The 200-day simple moving average in the long run is projected to reach $ 0.5328, while the 50-day simple moving average (SMA) in the short term may be $ 0.3333. All these figures reflect a slow but certain movement towards the higher ground.
The pivot points have established the support levels at $ 0.2574, $ 0.2509, and $ 0.2417. The resistance levels of the token are at $ 0.2731, $ 0.2823, and $ 0.2888. Traders and analysts highlight that stabilizing important support levels will be significant for ADA to avoid a deeper correction and preserve a larger technical structure.
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