- The market structure and technical indicators on Cardano’s 1-day time frame were bearish.
- The liquidation heatmap highlighted the key short-term levels to watch.
Cardano [ADA] continued its downward trend on the price chart. Cardano’s price forecast has been bearish on the higher futures since mid-April when the $0.56 support level was lost. In the second half of June, bears again showed their intentions.
The mid-April low of $0.4 failed to provide support and the price hovered ominously around it. A boost could cause prices to plummet. What is the next target for the sellers from now on?
Cardano price forecast shows that bears will be happier in the coming days
Source: ADA/USDT on TradingView
The range that ADA had maintained from December 2023 to May 2024 was broken and turned into resistance. Based on the Fibonacci levels plotted during the March price drop, we can see that the next target for the bears is the 23.6% extension level at the $0.3 support level.
The technical indicators for the daily time frame were also bearish. The RSI recently tried to poke its head above the neutral 50 but faced rejection, reinforcing bearish momentum.
The OBV was also in a sustained downward trend.
This meant strong selling pressure and the lack of buying volume, making it more likely that prices would fall to $0.3 next.
The liquidation heatmap indicated potential range formation
In early June, the $0.4-$0.415 region was a liquidity area with a wide range of liquidation levels. It was tested as support and ultimately succumbed to selling pressure. In the past ten days it has turned to resistance.
Read Cardanos [ADA] Price forecast 2024-25
The liquidation heatmap showed some liquidity building at $0.427, just above the recent high. The $0.35 was also an area of interest in the short term.
It is possible that ADA prices could fluctuate between the $0.42-$0.37 level to increase liquidity above these two zones before gathering in a few weeks.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer.