Cardano Faces Crucial Support level Amid correction
Cardano (ADA) is experiencing a 2.33% correction, pulling back toward a important support zone. This zone, around $0.49, is crucial for a potential bullish reversal.
Currently, ADA is testing a key support level. This area is crucial for a potential bullish reversal.
Currently, ADA is testing a key support level. This area, around $0.49, is crucial for a potential bullish reversal. This zone, around $0.49, is crucial for a potential bullish reversal.
Key technical points
- $0.49 Support Zone: Daily support, swing low, and value area low all converge at this level.
- Point of Control (POC): Critical reference level that must hold to sustain any upward move.
- Potential Deviation Setup: A liquidity sweep below support could trigger a sharp reversal.
ADA’s recent decline appears to be a controlled correction rather than a breakdown. Price action is now pressing into the $0.49 support zone,which has acted as a key pivot level throughout this range. This level is reinforced by multiple forms of confluence,making it a high-probability area for a bounce or reversal if buyers step in.
Importantly, the point of control remains a critical reference level. A breakdown below the POC would suggest a significant shift in sentiment and could negate the current bullish structure. Provided that ADA stays above the POC and defends this support zone, the pullback can be classified as a healthy higher low within an ongoing uptrend.
From a structural standpoint,ADA is still printing higher lows,which is essential for maintaining bullish momentum. If this support holds, it would likely form the next higher low before a push back toward the range highs near $1.19.
Traders should also be aware of the possibility of a deviation setup. In this scenario, price may temporarily dip below $0.49 to sweep liquidity before quickly reclaiming the level.This pattern often traps late sellers and fuels a stronger upside move once the deviation is resolved.
Volume remains relatively subdued, which suggests ADA could continue to range between major support and resistance zones until a catalyst initiates expansion.
what to expect in the coming price action
If ADA holds the $0.49 support zone, a bullish rotation toward $1.19 becomes likely in the coming sessions. However, if price deviates below support and fails to reclaim it, the bullish structure may break down. Expect some chop and indecision at current levels, with a reversal favored if the support zone is defended with conviction.
