Cardano (ADA) is now battling to retain the $0.38 price threshold following a recent correction from the $0.40 high that has stunned the bulls.
The latest uptrend engineered by ADA followed a period of price declines recorded in most of October. Amid these declines, Cardano slumped to a low of $0.2400 on Oct. 19. However, the uptrend also started that day, with ADA registering a multi-week price upshoot, as it eventually surged to 70% to $0.4097 on Nov. 16.
Nonetheless, the breakthrough to the $0.40 level was met with intense resistance from the bears. Cardano experienced increased price volatility, as the bears battered it below the price level. ADA repeatedly retested the $0.40 threshold after this drop, indicating attempts at another breakout.
Despite bullish developments surrounding the Cardano ecosystem, ADA failed to establish a solid position above $0.40. A battle between the bulls and the bears has seen Cardano consolidating between $0.35 and $0.39 since Nov. 18.
As this battle intensifies, the past three days have been largely unfavorable for ADA. The asset crashed to $0.3695 today amid sustained selling pressure. Cardano has recovered from this decline as of press time, but the asset is struggling to retain the $0.38 threshold.
Next Cardano Levels to Watch
ADA currently trades at $0.3799 at the reporting time. Despite its current bearish situation, the asset trades comfortably above the 50-day EMA at $0.3369 and the 200-day EMA at $0.3151. This position was due to the earlier 70% rally and signals bullish momentum in the short and long terms.
In addition, Cardano appears to have formed a bullish pennant structure amid the consolidation. This bullish pennant forms during a pause to an uptrend, and indicates that the previous uptrend is likely to continue after the consolidation ends.
At its current position, ADA needs to defend against any drops below the $0.3739. This pivotal support level currently sits at Fibonacci 0.5. A breach below this territory would bring ADA to Fib 0.618 tethered at the $0.3653 price level. Cardano’s next support lines below here are $0.3530 and $0.3373.
Looking upward, Cardano potentially faces some stern resistance points below $0.40. The first roadblock, representing Cardano’s most immediate resistance, resides at Fib. 0.382 currently stationed at $0.3826. Should ADA break above this point, it would come face to face with $0.3933.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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