The past week has been a roller-coaster ride for Cardano (ADA). It lost over 13% over the last 7 days alone and is now in a difficult position.
The cryptocurrency is now trading at a key support level. This is especially disturbing now that the bears seem to control the market.
Last week, ADA tried and failed to break the $0.5 resistance. Following signs of weakness from the buyers, the sellers took total control and sunk the price to the support at the $0.43 level.
The entire crypto market, as we all know, is strongly bearish. Bitcoin is currently in a dip and is pulling all other cryptos down.
The last time Cardano was at this level was in late August. After hitting this low, the price reversed sharply, gaining about 7% in a move that brought prices close to the $0.5 mark.
However, over the past week, the price of ADA moved upward from the $0.45 mark. This appeared to be a bounce from its swing lows it last touched early in September.
At the $0.48 level, prices sharply reversed, trapping the bulls who hadn't taken profits, plummeting below their previous swing lows and hitting new lows of $0.4339.
The price of Cardano seems to be targeting the lows around the $0.42 level and may not yet be done with its descent.
The bulls are expected to defend the $0.42 level with vigor, and ADA will likely consolidate for a while after this bearish move. Right before the bulls take over.
Depending on the strength of the bulls after hitting this level, ADA could rally right back upwards and may even hit the $0.47 level after failing to hit $0.45 this week.
If such a scenario occurs, the move from $0.42 to $0.47 could amount to a 12% move in total and may likely be where another market reversal occurs.
Overall, things look promising for Cardano's future this week, especially since the liquidations from its recent move to the downside amounted to nearly $25 million in trader's margins and the fact that it now sits close to a major support level.
On the other hand, if the bulls on Cardano fail to hold this level between $0.44 – $0.42, the move to the downside would be nothing short of devastating.
Cardano's price could sink lower well, reclaim the $0.32 levels, and serve as a nightmare experience for the bulls.
Disclaimer: The author's comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)