Caldano was one of the top performing cryptocurrencies in 2021, and its new high is now down 75%. Recently, ADA lost its key support level of $1. The price is now falling, forming a falling wedge, accompanied by the 100-day SMA (marked by a white line on the daily chart).
Daily chart (USD pair)
Technical Analysis of Grizzly Bear Market
The OBV indicator also fell below the downtrend line. Evaluating these bearish signals, a break of the red zone (static resistance) is the first condition for a shift to a bullish trend. The current key support/resistance levels are shown on the chart below.
Key support levels: $0.73 and $0.45
Key resistance levels: $1 and $1.20
Daily Chart (BTC pairs)
ADA price is at the intersection of dynamic and static support for BTC (ADA/BTC). Most technical speculators expect a rebound due to divergence and higher lows formed by the stochastic RSI oscillator.
Overall, based on recent interviews with project founders and fundamental news such as increased TVL, growth in long-term holders, Staking value and smart contracts on Cardano, a positive price volatility term is possible in the medium to long term. Overall cryptocurrency sentiment could lead to additional volatility in ADA in the short term.
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