- Cardano is in a bearish market structure after recently falling below $0.45.
- Overhead imbalances could soon thwart buyers’ attempts to recover.
cardano [ADA] Last month, the value of the company’s DeFi and NFT sectors fell. Along with the price of ADA, user activity was also on a downward trend. The token formed a range between the $0.45 and $0.685 levels.
AMBCrypto’s Cardano price prediction had a bearish bias. There is a good chance that a short-term range will form around $0.50 over the next week or two.
The bulls will have little power in the market until $0.568 turns into support.
The combination of fair value gap and mid-price range provided formidable resistance.
Source: ADA/USDT on TradingView
On the 1-day chart, the range formation over the past 5 months was evident. ADA’s potential for an uptrend in Q2 2024 was negated when the price fell below the key support level at $0.568.
This is the same level as marking a medium value. At the time of writing, the price was again near the low of the range after facing a rejection in the imbalance (white zone).
The RSI has been below the neutral 50 for nearly six weeks.
It showed a steady downward trend. Additionally, OBV also fell below a key support level (white dotted line), indicating strong selling pressure.
Taking these factors together, the price forecast for Cardano is more to the downside, with $0.4 likely to be the primary demand zone.
Likelihood that $0.5 will be tested next
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According to the liquidation heatmap, the next most notable prices were $0.483 and $0.527. With $0.45 of liquidity secured, a move towards the $0.5-$0.52 area looked likely.
To the south, there was also a significant concentration of liquidation levels at the $0.41 level. Therefore, the $0.41 to $0.51 level is likely where Cardano will trade this week.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.
