📊🔸 Cardano Volatility Hits Six-Week Low
Cardano (ADA)’s 1-week volatility recently dropped to a six-week low, a phenomenon that typically signals that the cryptocurrency’s price is consolidating and preparing for a significant move. Traditionally, falling volatility in financial markets tends to precede sharp price changes, and ADA appears to be following this pattern.
🔸 Price Movement Trends and Potential Scenarios
Despite short-term spikes in volatility since April, Cardano’s price trajectory has largely remained bearish. Each spike in volatility has either continued the downtrend or sparked a rapid rise to test previous support levels. Analysis suggests that the current trend may not break the prevailing bearish sentiment.
🔸 Resistance levels and potential price targets
Resistance levels at $0.36 and $0.42 have been identified as important markers in ADA’s price journey. Traders should keep a close eye on these levels as they could determine whether ADA will continue its bearish trend or break out to the upside. Additionally, the 12-hour chart reflects significant volatility associated with short-term bounces that have so far failed to sustain the long-term uptrend.
🔸 Key Resistance Points and Reversal Indicators
The 3-month liquidation heat map highlights key resistance points at $0.365, $0.44, $0.48, and $0.50, with the latter two showing the highest concentration of liquidations, marking them as areas of significant interest. These points align with the previously noted support and resistance zones, making them important in assessing ADA’s future price movement.
🔸 Strategy for#CardanoSwing Traders
Swing traders focused on Cardano can use the Fibonacci retracement levels at $0.366, $0.387, and $0.418 to gauge bullish strength in the market. The increase in weekly volatility could indicate that an impulse move is imminent.
