What’s Next After 17% Dip?
Cardano (ADA) has fallen below the $1 level, losing more than 17% in the past 24 hours. Currently, the altcoin is facing significant resistance in the $1.12 to $1.24 range on the weekly chart. Most of the top ten cryptocurrencies have fallen into danger territory, with altcoins such as ADA, XRP, and DOGE suffering the most losses.
Support levels worth paying attention to
As expected, prices have been struggling In the current area, there are signs that it will be difficult to break out of this range. If ADA manages to break out and close above $1.23 or $1.24, the next immediate resistance level will be around $1.46 based on the previous highs. Further resistance lies near the 78.6% Fibonacci level at $1.76 to $1.77.
If ADA price pulls back, there are a few key support levels to watch near $0.90 and $0.82. A break below $0.82 could signal a shift in the market, so traders should keep a close eye on these levels for potential signs of a further pullback.
Bearish divergence on short-term charts
ADA is showing signs of bearish divergence. Price has formed higher highs, while the Relative Strength Index (RSI) has confirmed lower highs. This suggests that the bullish momentum has faded and prices may see sideways movement or even a minor pullback in the coming days and weeks.
Long-term Outlook: Bullish market continues
Although ADA faces short-term resistance and bearish divergence, the larger market remains in a bullish phase. ADA’s price retains a positive long-term outlook but is currently crossing this key resistance area. However, overall market sentiment remains bullish. It is crucial for traders to monitor key price movements to determine if a breakout or pullback is imminent.
