Cardano bounces, but here’s why a price dip is likely before the weekend

As a seasoned analyst with years of experience under my belt, I’ve seen my fair share of market fluctuations. The bullish structure of Cardano [ADA] on the daily chart after breaking above $0.355 is indeed encouraging, but one must approach this situation with caution.

Last week’s low for Cardano [ADA] at $0.32 sparked a 14.4% increase, which has been encouraging for short-term investors. However, the token is now facing resistance yet again in its trading zone, as predicted by a recent report.

Instead of “Should traders be cautious or go long with $0.42 being the next key resistance?” you could rephrase it as: “Is it advisable for traders to take a long position at $0.42, considering it as the next significant resistance level? AMBCrypto’s analysis indicates that caution is necessary and the bears still hold control.”

Cardano approaches the 61.8% resistance level

According to the previously discussed report, the regions around $0.36 and $0.42 served as the most potent zones of potential resistance due to their proximity to key Fibonacci retracement levels.

Currently, Cardano (ADA) stands at approximately half its value at $0.366. The Relative Strength Index (RSI) moved above 50, suggesting an upswing in bullish momentum. Yet, the On-Balance Volume (OBV) failed to establish a new peak, indicating that buying pressure remains relatively low despite the price rise.

Consequently, it’s expected that the longer-term bearish trend will continue, despite the daily chart showing a bearish structure. A potential drop to around $0.388 or $0.418 might trigger a bearish turnaround.

For swing traders, it’s wise to hold off entering short positions until price action rejects from these specified levels. If the price falls, the pessimistic goal would be reached around $0.3 to $0.312.

A price move downward appeared imminent

Over the next 24-48 hours, it seems improbable that the price will rise significantly above $0.38 based on the current liquidation levels data.

Read Cardano’s [ADA] Price Prediction 2024-25

1. The total liquidity increase was significantly high. Consequently, a price drop might surprise the overzealous buyers.

1. Potential focus areas for the short term might be around $0.353 and $0.345 with Bitcoin‘s volatility potentially impacting the immediate trend of Cardano.

2024-08-22 20:07

Cardano approaches the 61.8% resistance level

A price move downward appeared imminent

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