Cardano [ADA] is currently facing rejection at the $0.75-$0.76 range as Bitcoin [BTC] experiences a 2.38% decline, causing ADA to drop by 4.68%. The recent price action has highlighted the importance of the $0.8 resistance zone and its impact on ADA’s future movements.
Despite the market sentiment being fearful, with the fear and greed index standing at 30, there is still an opportunity for Cardano bulls to bid on the dip. Recent online activity and price action suggest that ADA may struggle to maintain support at the $0.6 level. However, for swing traders, the risk-to-reward ratio remains favorable.
The range low, marked at $0.682, indicates that ADA’s recent dip to $0.58 may have accumulated liquidity, potentially leading to lower prices. Nonetheless, last week’s low at $0.647 offers a viable entry point for long positions, with recommended stop-losses set at 3%-5% below this level. The lack of significant bearish pressure in technical indicators and support at the range low make this an attractive opportunity for traders.
Technical indicators such as the A/D line, CMF, and Awesome Oscillator suggest that the $0.65-$0.68 region is a likely candidate for a price bounce. The 1-week liquidation heatmap also indicates a liquidity pocket near the price at $0.68-$0.69, which could potentially lead to lower prices before a bounce occurs.
However, it is essential to note that a bounce from these levels is not guaranteed, as it heavily depends on BTC trends in the next 24-48 hours. Traders must remain vigilant and monitor BTC’s price movements closely to make informed decisions regarding ADA trading.
In conclusion, while the current market sentiment may be fearful, there are still opportunities for Cardano bulls to capitalize on the dip. By carefully analyzing technical indicators and price action, traders can make informed decisions and potentially profit from ADA’s price movements.
Disclaimer: The information provided is the writer’s opinion and should not be considered as financial, investment, trading, or other types of advice.
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