Cardano’s recent price movements have displayed significant uncertainty among market participants, following the heavy sell-off that occurred in the second week of June. Over the past six days, short-bodied and high-wick candles have marked the ADA price chart, indicating this uncertainty. Amid this consolidation, traders have been keeping a close eye on the nearest significant levels in order to determine the future prospects of Cardano.
On June 10th, the Cardano coin showcased a long-tail rejection candle at its $0.24 support level. The accumulation seen after this massive sell-off was largely due to investors entering the market at discounted prices. The ongoing bearish trends and buying accumulation have led to the current sideways movement in the ADA price. This battle between buyers and sellers could potentially trigger a price range formation between $0.3 and $0.24.
Nevertheless, if the overhead supply pressure persists, ADA prices could plunge by another 8% to revisit the bottom support of $0.24. This retest could provide additional confirmation for a new relief rally in Cardano. However, it is important to note that the price’s upside potential could be limited by a downsloping trendline that has been carrying a correction phase for the past two months.
The present sideways movement in the ADA price is expected to stabilize the build-up of buying pressure after the excessive sell-off in the coin’s market value. In order for buyers to reclaim the $0.35 mark, they would need to achieve a breakout range resistance of $0.3 and an overhead trendline to initiate a new recovery that could surpass $0.3.
The Relative Strength Index (RSI) on the daily chart slopes at the oversold region, reflecting unstable price behavior due to excessive selling. Therefore, it is necessary for an influx of buying pressure to be introduced in order to establish a sustainable trend. The Exponential Moving Average (EMA) also indicates that the 20-day EMA could serve as a dynamic resistance in a high momentum downtrend.
One of the current key concerns in the market is the high level of volatility before a potential explosive move for Cardano. While some might view this as an opportunity to buy now, others are likely to remain cautious due to the uncertainty surrounding its future direction.
Please note that this content may include the personal opinion of the author and is subject to market conditions. It is recommended to conduct thorough market research before investing in cryptocurrencies. The author and the publication do not hold any responsibility for personal financial losses.
Source: Coingape
