HomeNewsADA's Support Zone Challenge: Cardano's Path to Recovery at $0.55

ADA’s Support Zone Challenge: Cardano’s Path to Recovery at $0.55

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  • Bullish Market Structure and Support Levels: Cardano maintains a bullish higher timeframe market structure with critical support levels identified around $0.55.
  • Fibonacci Extension Levels in Play: Key Fibonacci extension levels have been influential in Cardano’s price movement, with potential for an upward turn towards $0.64.

Cardano’s Market Dynamics and Technical Indicators

Cardano [ADA] recently achieved a peak price of $0.68 on December 14th, maintaining a bullish stance in its higher timeframe market structure. However, a notable support level at $0.6 has recently been breached, sparking interest in the next potential support zones.

Development Activity and Long-Term Potential

Earlier this week, reports highlighted a surge in Cardano’s development activity, reflecting a high number of contributions. This uptick in developmental efforts reinforces the perception of ADA as a promising long-term investment.

Significance of Fibonacci Extension Levels

ADA’s interaction with the Fibonacci extension levels has been noteworthy. After facing rejection at the 23.6% extension level in November, ADA managed to break through this barrier in early December, leading to rapid price increases. Subsequent extension levels at 123.6% and 223.6% have also influenced ADA’s trajectory, acting as resistance and support markers.

Analyzing Recent Price Reactions

The $0.595 price level, a significant marker from August 2022, has recently acted as a reaction point on shorter timeframes, indicating its importance as a level to monitor. A drop below $0.512 could signal a bearish shift in the daily market structure. Concurrently, the On-Balance Volume (OBV) has seen a slight decrease but remains positioned for a potential uptrend.

Liquidity Pools and Potential Reversal Zones

Liquidation level heatmaps suggest that the $0.54 level could serve as a strong foundation for a bullish reversal. The $0.62-$0.64 range represents a considerable aggregation of estimated liquidation levels, hinting at a potential upward movement towards $0.64, and possibly higher to the $0.65-$0.67 zone.

Cardano’s Current Position and Outlook

Given the inability of bulls to defend the $0.595 level, a decline towards $0.54 appears increasingly plausible. Should ADA reach this support level, it could set the stage for a rebound, capitalizing on the observed market dynamics and the influential role of Fibonacci extension levels in determining ADA’s price movement.

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Marcel Knobloch
Marcel Knobloch
Marcel is the managing partner of ETHNews and is also known as Collin Brown in the crypto community. He is a seasoned Bitcoin investor who entered the crypto scene during its early stages and has since become a veteran trader in both the cryptocurrency and forex markets. His journey began in 2012 when he made his first investment in Bitcoin, marking the beginning of his deep-rooted passion for blockchain technology and digital assets. With a mission to demystify the intricacies of blockchain for the masses, Marcel endeavors to bring the world of cryptocurrencies closer to everyone. His insightful reports are dedicated to shedding light on the latest developments and innovations within the realms of Bitcoin, Ethereum, Ripple (XRP), IOTA, VeChain, Cardano, Hedera, and numerous other cryptocurrencies. Marcel's in-depth analysis and commitment to providing accessible information make him a trusted source for both novice and experienced crypto enthusiasts. Marcel's academic background includes a Master's Degree in Business Education, which has equipped him with a solid foundation in financial markets and investment strategies. Over the past decade, he has amassed invaluable experience working with various startups across the globe, enriching his knowledge and understanding of the ever-evolving cryptocurrency landscape. With his wealth of expertise and dedication to empowering others with crypto knowledge, Marcel continues to be a driving force in the cryptocurrency community. Business Email: marcel.knobloch@hotmail.com Phone: +49 160 92211628