- At the time of writing, Cardano had a long-term bullish outlook
- Last month’s range formation provided plenty of opportunities for swing traders
Cardano (ADA) has seen lower time volatility over the past two days. The psychological resistance level at $1 matches well with the range formation that ADA has been trading in for the past month.
The rejection of this resistance zone meant that a price decline would be likely in the coming days. And yet, this could provide a buying opportunity for those with a bullish conviction.
Multi-timeframe analysis outlines key Cardano levels at which to buy and sell
Source: ADA/USDT on TradingView
The weekly calendar revealed a strongly bullish outlook for Cardano. Resistance at $0.787 was breached and retested as support. At press time, the $1 area posed a challenge for buyers.
In January 2022, the $1.04 to $1.14 area formed local resistance, as did the $1.246 level. In the coming weeks, these will be key resistance areas for ADA bulls. However, momentum was on their side, based on readings from the Awesome Oscillator. The CMF also highlighted significant capital inflows in recent weeks.
Source: ADA/USDT on TradingView
On the daily period, a range formation was spotted. Highlighted in purple, it ranged from $0.84 to $1.12, with an intermediate level at $0.98. The mid-level has served as both support and resistance over the past six weeks, making the range formation more credible.
Below the range lows was higher time support at $0.787. Due to Cardano’s rejection at the mid-level in recent days, a move towards $0.84 and up to $0.78 would be possible in the coming days.
The daily CMF was at -0.17, highlighting intense selling pressure. The Awesome Oscillator has also formed a bearish crossover. Together, they supported the idea that a move to the lower end of the range was imminent.
Source: Coinalyse
Zooming in on the lower timeframes, AMBCrypto observed that the short-term sentiment was bearish. Open interest has also declined steadily over the past 36 hours. This reflects the distrust of speculative markets. Spot CVD also fell slightly, but recovered from last week.
Read Cardano (ADA) Price Prediction 2025-26
Overall, the longer time frames mean that investors should not be rattled by less volatility in time frames. A drop to $0.84 or lower would likely present a good buying opportunity. Over the next few months, breaking above $1.246 would signal another strong price rally for Cardano.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.
