Cardano [ADA] Price Prediction: Bears Target $0.3 as Downtrend Continues

• Cardano’s market dynamics and technical indicators on a daily timeframe signal a bearish trend.
• Short-term liquidations show crucial levels that traders should monitor closely.
• Recent resistance tests suggest a potential for further price declines.

This in-depth analysis of Cardano’s current market scenario offers insights into what traders can expect, backed by technical indicators and liquidity considerations.

Cardano’s Persisting Downtrend

Since mid-April, Cardano [ADA] has been on a persistent downward trajectory. The price saw a significant bearish turn when it fell below the $0.56 support level. This downtrend was further validated in late June when the price struggled to maintain its standing around $0.4. A continued sell-off could see ADA prices plummeting further. The critical question remains: Where will sellers set their sights next?

Upcoming Bearish Targets for Cardano

Taking into account the Fibonacci levels plotted during the March decline, it becomes evident that sellers could target the 23.6% extension level, which aligns with the $0.3 support level. This bearish outlook is further reinforced by daily timeframe technical indicators.

The Relative Strength Index (RSI), despite recent attempts, was unable to break above the neutral 50 mark, indicating sustained bearish momentum. Additionally, the On-Balance Volume (OBV) has been consistently declining, signifying strong selling pressure and a notable absence of buying activity. This suggests that ADA might be heading towards the $0.3 level in the near-term.

Liquidity and Resistance Levels: Key Insights

In early June, the $0.4-$0.415 region emerged as a significant liquidity pocket with numerous liquidation levels. This level was rigorously tested and eventually succumbed to bearish forces, flipping into a resistance zone. Over the past ten days, despite attempts to reclaim this level, it has remained firmly a point of resistance.

According to the latest liquidation heatmap, there is potential for ADA prices to oscillate between $0.42-$0.37 levels. This could be a move to build liquidity before any significant price movement. Notably, liquidity is accumulating at $0.427, just above the recent high, and at $0.35, indicating zones of interest for short-term price movements.

Conclusion

In conclusion, Cardano’s current market structure shows a clear bearish trajectory with the potential to push prices towards the $0.3 support level. Traders should closely monitor liquidity levels and resistance zones, as these could provide crucial insights into future price movements. As always, it is vital to stay updated with the latest market developments and adopt a cautious approach in such volatile conditions.