Cardano Price Below $1, Here is The Next Support Level to Watch (ADA Price Analysis)


Following the recent bearish market sentiment, Cardano’s ADA lost the psychological key support level of $1. In case this level won’t get reclaimed by today’s daily close, ADA will record a full-candle body trading below $1 for the first time since February 2021 (!).

Key Support levels: $0.84, $0.68

Key Resistance levels: $1, $1.2

Over the past month, ADA was trading amid the $1 mark. Despite two wicks below in January, the price action and the daily candles were above or around the significant support line.

If today’s candle closes at current levels (~$0.93), we can expect the $1 to turn into solid resistance after being strong support for so long.

This is a significant break of the market structure for ADA and signals that the price can drop much lower in the next future. The closest key support levels are found at $0.84 and $0.68.

ADAUSDT_2022-02-20_15-52-01
Chart by TradingView

Technical Indicators

Trading Volume: Volume has been steady, but sellers had the upper hand in the past two weeks, with the price continuing to move lower.

RSI: The daily RSI is quickly approaching the oversold area, and ADA may see a temp relief once it hits one of the key support levels indicated above (in case support holds).

MACD: The daily MACD is bearish and picking up momentum. This is terrible news for ADA that is likely to continue South in the near term.

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ADAUSDT_2022-02-20_15-52-55
Chart by TradingView

Bias

The current bias is bearish, and losing the $1 support is a major red flag to any remaining bulls. Watch for today’s daily close – Sunday – which is also a weekly candle close.

Short-Term Prediction for ADA Price

If today’s candle closes below $1, expect to see ADA heading towards the key support levels at $0.84 and $0.68. The current price action gives no signs that ADA can move back up at this moment. Therefore, best to be patient and wait for a more comfortable entry at a lower point.

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Cryptocurrency charts by TradingView.


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