- Currently, Cardano has a positive long-term outlook
- The recent price range formation has provided opportunities for swing traders
Cardano [ADA] has experienced significant volatility on lower timeframes in the past few days. The $1 psychological resistance level aligns with the month-long range that ADA has been trading within.
The rejection from this resistance suggests a potential price decline in the near future, which could be seen as a buying opportunity for those who are bullish on the coin.
Key Cardano Levels to Watch for Buying and Selling
Source: ADA/USDT on TradingView
The weekly chart shows a strong bullish outlook for Cardano. The $0.787 resistance has been broken and retested as support. Currently, the $1 level poses a challenge for buyers.
In January 2022, the $1.04-$1.14 range and the $1.246 level acted as local resistances. These levels will be crucial for ADA bulls in the coming weeks. Positive momentum is indicated by the Awesome Oscillator readings, and the CMF shows significant capital inflows recently.
Source: ADA/USDT on TradingView
On the daily chart, a range has been identified from $0.84 to $1.12, with the mid-range at $0.98. The $0.98 level has served as both support and resistance over the past six weeks, adding credibility to the range formation.
Below the range lows lies the higher timeframe support at $0.787. Given Cardano’s recent rejection at the mid-range level, a move towards $0.84 and potentially to $0.78 could be expected in the coming days.
The daily CMF is at -0.17, indicating strong selling pressure. Additionally, the Awesome Oscillator shows a bearish crossover, supporting the likelihood of a move towards the range lows.
Looking at lower timeframes, a bearish sentiment is observed. Open Interest has been decreasing over the past 36 hours, reflecting caution in speculative markets. The spot CVD has also slightly declined but has shown improvement compared to the previous week.
Read Cardano’s [ADA] Price Prediction 2025-26
Despite lower timeframe volatility, investors should focus on the higher timeframes. A drop to $0.84 or lower could present a buying opportunity, while a breakout above $1.246 would signal further upward movement for Cardano in the coming months.
Disclaimer: The information provided is the author’s opinion and does not constitute financial, investment, or trading advice
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