Cardano’s resistance weakens as the asset is now flashing some significant signs of weakness after failing to surmount the important region of $0.10 as we are reading in the following Cardano ADA news.
It was caught up after the strong news-driven uptrend in the past few months posting most of the gains over the past few weeks. It still remains unclear whether or not the positive developments that happened as of late will be enough to keep the intense uptrend of the asset’s price. One analyst is expecting the price to rally higher before reaching a crucial resistance region and he expects ADA to crash by 25% once this level is reached.
Cardano’s Resistance weakened as the price declined alongside the entire aggregated crypto market. Being in a strong uptrend over the past few weeks and months, the buyers don’t seem to gain enough support to shatter the resistance that it is facing at $0.10. ADA’s intense uptrend was not based on the hype nor the technical strength. It happened mainly because of the release of the Shelley mainnet upgrade as well as few other news-related developments.
One analyst is now noting that the token could continue going higher in the near-term until it reaches a daily supply zone. He expects it to decline by more than 25% after facing a strong rejection. At the time of writing, Cardano is trading down by 5% at a current price of $0.095 which marks a slight decline from the daily high of $0.101 which was set yesterday. It even tried but failed on multiple occasions to surmount the intense selling pressure which exists around $0.10 while remaining unclear as to whether or not will it be able to break through the region anytime soon.
Analysts noted that the cryptocurrency has been flashing the high time frame bearish divergence which would be a sign that the tides are shifting out of the bull’s favor.
“There are some HTF bear divs developing but I wouldn’t fade coins that showed multi-week strength.”
One possibility that is considered by another crypto analyst is that the asset will continue climbing before it faces a huge rejection that sparks a strong trend shift into the sellers’ favor. He noted that he expects ADA to rise under 10% to the daily supply zone before starting a sharp decline that causes it to drop by 25%:
“ADA – short scenario if it sets up. 1st target mid range.”
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