Cardano in the Red: Can ADA Break Through Resistance Amid Market Fear?

Cardano in the Red- What Traders Need to Know

Cardano in the Red– Cardano (ADA) faced significant resistance around the $0.75-$0.76 range as Bitcoin (BTC) experienced a 2.38% drop in the past seven hours, causing ADA to dip by 4.68%. As mentioned in a prior report, the price action at the $0.80 resistance zone would be crucial for ADA’s short-term movement. However, ADA’s bullish momentum was halted before testing this resistance level, largely due to BTC’s weekend volatility affecting the broader altcoin market.

Despite the current volatility, the higher timeframe bias for Cardano (ADA) remains intact. The key support level to watch is at $0.6, though recent price action and online activity suggest that Cardano (ADA) may struggle to maintain support at this level. The market sentiment remains fearful, with the Fear and Greed index at 30, indicating a strong sense of caution among investors throughout March.

For swing traders, however, the risk-to-reward ratio still looks attractive. The recent dip to $0.58 may have resulted in liquidity accumulation, potentially causing the price to go lower. Yet, there remains an opportunity for long positions around the $0.647 level, with stop-losses placed at 3%-5% below this threshold.

Technical Indicators and Potential Price Bounce

Technical indicators show mixed signals. The A/D line has retraced the gains made in early March but has not fallen below local lows. The CMF is neutral, and capital outflows are notable, suggesting a balance of buy and sell pressure. The Awesome Oscillator points to weak bearish momentum, and the $0.65-$0.68 region appears to be a likely zone for a price bounce. The 1-week liquidation heatmap also shows that the $0.68-$0.69 range could be a liquidity pocket, which may cause prices to dip further before a potential bounce.

While these technical levels present opportunities for Cardano (ADA) to recover, the overall price movement will depend largely on Bitcoin’s trends in the next 24-48 hours. Thus, while there is potential for a short-term recovery, caution is advised, and ADA’s direction remains uncertain without BTC’s stabilization.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.