Bitcoin faces profit-taking, but 4 reasons why BTC’s rally isn’t over yet!
- Cardano has a bearish market structure after recently slipping below $0.45.
- The imbalance immediately overhead could rebuff the buyers’ attempts at recovery.
Cardano [ADA] saw its DeFi and NFT sectors decline in value last month. User activity was also in a downtrend alongside the price of ADA. The token formed a range between the $0.45 and$0.685 levels.
The Cardano price prediction from AMBCrypto was bearishly biased. There is a good chance of a short-term range formation over the next week or two around the $0.5 mark.
Until $0.568 is flipped to support, the bulls have little power in the market.
The combination of the fair value gap and mid-range posed formidable resistance
Source: ADA/USDT on TradingView
On the one-day chart, the range formation of the past five months was evident. The chances of ADA trending higher in Q2 2024 were shot down when the price fell below the critical $0.568 support level.
This is the same level that marks the mid-range value. At press time, the price was near the range lows once again after facing rejection at the imbalance (white zone).
The RSI has been below neutral 50 for nearly six weeks now.
It indicated firm downward momentum. Additionally, the OBV also slipped below a key support level (dotted white) and signaled strong selling pressure.
Taking these factors together, the Cardano price prediction is more downside, with $0.4 likely to be a key demand zone.
The likelihood of $0.5 being tested next
Source: Hyblock
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The liquidation heatmap showed that the $0.483 and $0.527 were the next areas of interest. Now that the liquidity at $0.45 was taken, a move toward the $0.5-$0.52 region appeared likely.
To the south, the $0.41 level also possessed a considerable concentration of liquidation levels. Therefore, the $0.41-$0.51 levels would likely be the ones within which Cardano is likely to trade this week.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
