ADA Faces Heavy Selling: Will Bulls Defend This Critical Support? – BlockNews
😲 Cardano struggles after a sharp correction, with key support levels now being tested. Fibonacci retracement suggests a potential bounce, but resistance remains strong overhead. Indicators show increased volatility, making ADA’s next move uncertain. Cardano’s price action has taken a hit after its recent rally, with bears forcing a pullback. The TradingView chart shows a steep
- Cardano struggles after a sharp correction, with key support levels now being tested.
- Fibonacci retracement suggests a potential bounce, but resistance remains strong overhead.
- Indicators show increased volatility, making ADA’s next move uncertain.
Cardano’s price action has taken a hit after its recent rally, with bears forcing a pullback. The TradingView chart shows a steep decline following ADA’s push above $1.10, signaling that traders took profits at higher levels. Now, the price is testing a crucial support zone between $0.70 and $0.75, an area that previously acted as a strong reversal point.
If ADA fails to hold this level, it could lead to an extended downside move, potentially targeting the $0.65 range. However, if buyers step in, we might see a short-term recovery attempt. The market remains on edge as traders wait for confirmation on whether this is just a correction or the start of a larger downtrend.
Cardano Faces a Critical Retest
Looking at Fibonacci retracement levels, ADA is hovering around the 61.8% retracement zone of its previous rally. This area is often seen as a key support level, where buyers tend to step in and prevent further declines. If this level holds, a potential bounce toward $0.85-$0.90 could be in play.
However, ADA faces multiple resistance levels on the way back up. The first major hurdle is near $0.88, where the price previously struggled. A clear breakout above this point would signal renewed bullish momentum, but until that happens, the risk of further downside remains.
Indicators Show Volatility Ahead
ADA’s Bollinger Bands are widening, indicating that volatility is picking up. The price has been testing the lower band, suggesting oversold conditions, but there hasn’t been a strong bounce yet. If bulls regain control, we could see a quick price rebound.
However, if selling pressure persists, ADA may experience another leg down before finding solid ground. The next few trading sessions will be crucial in determining whether Cardano can stabilize or if more downside is ahead.
Cardano was founded by Charles Hoskinson, one of Ethereum’s co-founders, and has built a reputation for its research-driven approach. Unlike many blockchains, ADA focuses on peer-reviewed development, making it one of the most technically advanced projects in the crypto space.
For now, ADA traders should keep an eye on whether the current support zone holds. If it does, a relief rally could be on the horizon. But if it breaks, the next downside target could come sooner than expected.
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