Outside Source
Cardano encountered significant selling pressure following a notable rejection at the $1.3 resistance region, resulting in a sharp decline.
However, the price has now reached a critical support level, suggesting the potential for a bullish consolidation phase in the mid-term.
Technical Analysis
By Shayan
The Daily Chart
Cardano recently failed to breach the substantial $1.3 resistance zone due to heightened selling pressure, driven mainly by participants capitalizing on the distribution phase and opening short positions.
This rejection led to a decline, with the price finding support at the crucial $0.8 level, where a bullish rebound has already occurred.
The price range between $0.8 and $1.3 represents a critical consolidation zone, with buyers likely defending the $0.8 threshold.
A bullish retracement phase toward the $1.3 mark is anticipated over the mid-term.
The 4-Hour Chart
The rejection at $1.3 is reflected on the 4-hour chart, where significant selling activity pushed the price downward.
This correction aligns with the typical behavior of a healthy bullish trend, allowing for profit-taking and market stabilization. Cardano’s price has landed within a robust support region, defined by the 0.5 ($0.8) – 0.618 ($0.7) Fibonacci levels.
This area is expected to be a strong defense, preventing further declines. A bullish rebound and consolidation phase toward the $1.3 mark appears likely in the mid-term. With substantial support holding, Cardano could soon resume its upward trajectory, reinforcing the bullish sentiment.
This article first appeared at CryptoPotato
