CoinEdge reported:
The market structure and technical indicators for Cardano within a one-day period are bearish. The heat map highlights key short-term levels that need attention.
Cardano [ADA] continues its decline on the price chart. Since losing support at $0.56 in mid-April, Cardano’s price predictions have consistently indicated a bearish outlook over longer time frames. In the latter half of June, bears once again demonstrated their intentions.
The low point of $0.40 in mid-April failed to hold as support, with prices hovering around it. The momentum could lead to a sharp decline in prices. What is the next target for sellers from here on?
Price predictions for Cardano indicate that bears will have more to cheer about in the coming days.
The range maintained by ADA between December 2023 and May 2024 has been broken and turned into resistance. Drawing Fibonacci levels during the price decline in March, we can see that the next target for bears is the 23.6% extension level of the $0.30 support.
Daily timeframe technical indicators also show bearish signs. The RSI recently attempted to break the neutral 50 point but was rejected, reinforcing the bearish momentum.
OBV is also in a continued downward trend.
This implies strong selling pressure and insufficient buying volume, making it more likely for prices to decline further to $0.30 in the next step.
The heat map illustrates a potential range forming.
At the beginning of June, the $0.40-$0.415 region was a liquidity pocket with numerous liquidation levels. It withstood as support, ultimately succumbing to selling pressure. In the past ten days, it has turned into resistance.
Read Cardano’s [ADA] price predictions for 2024-2025.
The heat map shows that some liquidity is accumulating, reaching $0.427, slightly above the recent high point. The $0.35 area is also a short-term area of interest.
ADA prices may fluctuate between $0.42 and $0.37 to increase liquidity above these two areas, which will then be gathered over the next few weeks.
Disclaimer: The information provided does not constitute financial, investment, trading, or any other form of advice and is solely the author’s opinion.
