- ADA faces a significant resistance level after being a strong support in the past
- Market sentiment remains uncertain with a divided outlook
Cardano (ADA) has not been immune to the recent market downturn, trading at $0.3348 following a 1.8% decline in the last 24 hours.
Can ADA overcome the $0.3449 resistance?
Attempts to break above the $0.3449 resistance, previously a key support level, have so far been unsuccessful.
The emergence of a bearish continuation flag on the charts suggests potential selling pressure, possibly driving the price towards the $0.3184 support level.
Source: TradingView
A close below the bearish flag’s lower boundary could indicate full bearish dominance, while a close above the $0.3449 resistance might signal a bullish reversal.
Despite the current challenges, long-term holders seem optimistic about ADA’s recovery.
Optimism among long-term holders
Data from Coinglass shows a significant outflow of ADA from exchanges, indicating a bullish sentiment among long-term holders.
Source: Coinglass
Additionally, DeFillama reports a gradual increase in ADA’s Total Value Locked in DeFi protocols, supporting a bullish outlook for the cryptocurrency.
The future direction of Cardano remains uncertain, with new trading levels determining whether bulls or bears will dominate in the near term.