- Cardano traders must remain cautious, as the $0.82-$0.88 was a supply zone.
- A move to $0.62 in the coming days was anticipated, and bulls need to halt the downtrend there.
The decision on a Cardano [ADA] spot ETF was looming. The deadline for the decision is the 27th of March.
Recently, a spate of Cardano whale token movements also asked the question — Was this accumulation before the decision or just the distribution of assets?
The price charts offered some insights into what the market sentiment was like. As things stand, ADA was falling at a rapid pace and could head for $0.6 in the coming weeks.
The volume profile showed $0.9 and $0.74 could be key
Source: ADA/USDT TradingView
The swing structure of ADA was bearish. The rally in November took it beyond the previous highs of 2024. Since then, the token has made lower highs and lower lows.
The recent low was $0.845, and the recent lower high was $1.13 in January. This was followed by a sharp price drop, shifting the swing structure bearishly.
The Fixed Range Volume Profile from last February highlighted three high-volume nodes at $0.74, $0.59, and $0.45. Besides these nodes, the Value Area high was at $0.876. In recent months, Cardano has found support around this level.
The quick price bounce from the $0.68 level indicated some bullishness in the lower timeframes. This was accompanied by ADA moving beyond the high-volume node at $0.74.
The Awesome Oscillator showed bearish momentum was dominant, although it has weakened over the past week after the quick price bounce.
Combined with the bearish structure, it suggested that the price bounce could extend toward $0.87-$0.90 before resuming the downtrend.
To halt this downtrend, Cardano bulls need to halt the formation of lower lows. This would be achieved once a range is formed, but at press time, this has not occurred.
Therefore, the Cardano price prediction for the coming months is a continued downtrend. There’s a chance of a range formation between the $0.68-$0.81 levels, but this could take a week or two to materialize.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
