What’s after the 17% dip?
Cardano (ADA) has dropped below the $1 level and is down more than 17% in the last 24 hours. The altcoin is currently facing major resistance in the $1.12 to $1.24 range on the weekly chart. Most of the top 10 cryptocurrencies have entered danger zones, with altcoins such as ADA, XRP and DOGE recording significant losses.
Visible support levels
As expected, the price is struggling in the current area, showing signs of difficulty breaking above this range. If the ADA can break out and close a weekly candle above $1.23 or $1.24, the next immediate resistance level based on previous highs will be around $1.46. Additional resistance is found at the 78.6% Fibonacci level near $1.76 to $1.77.
If ADA price pulls back, there are several key support levels to watch near $0.90 and $0.82. A move below $0.82 could signal a reversal in the market, so traders should monitor these levels for signs of a deeper pullback.
Bearish divergence on short-term charts
The ADA is showing signs of bear divergence. The price made higher highs, the relative strength index (RSI) confirmed lower highs. This indicates that the bullish momentum has faded, and there may be a possibility of sideways price action or a slight pullback in the coming days or weeks.
Long-term view: Bullish market continues.
While ADA is facing short-term resistance and bearish divergence, the broader market remains bullish. ADA's price is still maintaining a positive long-term outlook, but for now it is moving in this critical defensive zone. However, the overall market sentiment is still bearish. For traders, it is important to track key price action to determine if a breakout or reversal is on the horizon.
