ADA at Critical Support: Massive Move Expected - Three Things to Watch (Cardano Price Analysis)

CryptoPotato

2023-08-02 11:12:40

Cardano is preparing a significant move and the price is compressing above the key support.

Key Support levels: $0.30

Key Resistance levels: $0.35

1. Key Support Under Pressure

On Monday, the price briefly dipped under the key support at 30 cents, only to be saved by the bulls that rushed in as soon as that happened. This support has been tested three times since mid-July, and the pressure is building up.

Chart by TradingView## 2. Price Compressing in the Apex

Looking at the current price formation, the cryptocurrency is approaching a critical junction between its current support level and uptrend since June and the correction from the pump in early July, which has formed a descending triangle. This formation is approaching its apex, and the price is likely to escape it, which will bring back volatility to ADA.

Chart by TradingView## 3. The Quiet Before the Storm

Until market participants decide where Cardano’s price is headed next, volatility will decrease as the price reaches the end of its formation. This indecision is also reflected in the daily MACD, which has turned flat on the histogram. This will likely not last, and the price will soon make its move.

Chart by TradingView## Bias

The bias for ADA is neutral at this time.

Short-Term Prediction for ADA Price

As long as the key support at 30 cents holds, then ADA could make a move to reach 35 cents next, which is the key resistance. However, the support has been tested several times, and it could fold if buyers don’t rush in again. If that happens, then buyers should show interest at 28 cents.

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