- Cardano price closed December’s auction at a 22% loss of market value.
- ADA has strong confluence zones near the $0.21 level.
- Invalidation of the bearish thesis is a flip of the $0.29 barrier into support.
Cardano price shows strong bearish signals to start the new year. ADA could fall below $0.20 if market conditions persist.
Cardano price struggles to find support
Cardano price is facing a persistent bearish force that has yet to show signs of waning.
ADA closed December’s auction at a 22% loss of market value on the month, more than five times of Bitcoin’s 4% decline. As of January 2, the smart-contract token is up 3% since breaching the $0.24 price zone. While the three days of bullish price action are optimistic, the ADA price still shows more evidence to suggest that the downtrend will continue.
Cardano price currently auctions at $0.253. The current pullback finds resistance at Cardano’s previous support zone during December’s 22% downswing. Additionally, the bulls are finding resistance from the 21-day simple moving average.
A Fibonacci retracement tool surrounding the pandemic lows at $0.01 and the all-time highs at $2.82 shows the current price hovering just above the 50% Fib level at $0.21. The aforementioned level is likely where smart-money bears are considering to relieve their positions.
A daily closing candlestick below $0.21 would create a strong possibility for a retracement into the “Golden Pocket” 61.8% Fib level at $0.11. ADA would decline by 53% under the bearish scenario.
ADA/USDT 1-Day Chart
Invalidation of the bearish thesis could occur, but the bulls will need first to conquer November’s broken support zone at $0.29. In doing so, the ADA price could rally back towards the 38.2% Fib level at $0.39, resulting in a 63% increase from the current Cardano price.
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