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Cardano fails at ‘flipping’ – Here’s what it means

2min Read

April’s $0.383 – $0.370 support zone has become a key resistance level and roadblock. ADA bulls can only gain more leverage if they clear it.

What next for Cardano as it fails to flip a key April level into support

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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

Cardano [ADA] is still stuck in a range after failing to flip $0.3800 into support. The failure to clear the roadblock has prevented the 12-hour market structure from flipping to bullish. 

So, sellers could exert more control for the next few hours/days unless Bitcoin [BTC] reverses recent losses. 

The recent recovery, from $0.35 – $0.38, seen between 26 May- 29 May, corresponded with improved development activity and a DeFi transactions surge within the Cardano ecosystem

However, the high developer count couldn’t push ADA bulls to close above this hurdle. 

ADA rejected at April’s former support zone

Source: ADA/USDT on TradingView

The support zone (cyan) of $0.383 – $0.370 has been a key demand zone throughout April and early May. The level is also a bullish order block (OB) formed on 30 March on the 12-hour chart. 

Sellers cracked the support in early May, following increased bearish pressure, but the drop eased near $0.3500. After that, price action formed a range between the former support zone and $0.354. 

At press time, ADA faced rejection at $0.383, and the RSI was headed to the neutral position of the 50-mark. The OBV has declined since mid-April. 

As such, a rebound could be likely from the mid-range level of $0.368 and sellers should watch out for it. But sellers could extend gains to the range low at $0.370 if the mid-range level cracks. 

Conversely, a move above $0.383 will invalidate the above bearish thesis. Such an upswing will flip the market structure bullish, and ADA could rally to $0.397. 


Is your portfolio green? Check out the ADA Profit Calculator 


Sellers gained more market control

Source: Coinalyze

The CVD (Cumulative Volume Delta) spot, which tracks cumulative volume change within buy and sell orders, increased rapidly from May 27. This underscores buyers’ control. 

But the metric faltered on 29 May and has nosedived since then, denoting increasing market control by sellers. As such, sellers could breach the mid-range of $0.368, especially if BTC drops below $27k. 

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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