After remaining relatively quiet last week, Cardano regained momentum today with buying approaching an important level. Even though the bulls seemed to become active again, the trend remains bearish in the medium term.

ADA started this month with a bearish trend and fell to the $0.28 level, but later recovered due to a sharp rejection. This led to a temporary selling pause and the price rose by 25% to $0.35 within three days.

Failing to break above this price level due to a small bearish interception, the price fell briefly and remained relatively quiet throughout last week.

However, this week trading became interesting as the price rose steadily to almost $0.4 today. A further increase in volatility could bring trading back to the $0.45 level – where the market had initiated a decline last month.

But if we look at the overall market structure, ADA is still in a downward spiral on the daily chart, which suggests that the bears still have the upper hand. They could return if the bulls fail to maintain the pressure.

From a technical perspective, demand for Cardano is increasing. We can expect further price gains in the coming days. A jump above last month’s high would signal a slight trend reversal. By the looks of things, the bulls are currently gaining control.

Important ADA levels to keep an eye on

Apart from the $0.317 and $0.28 levels that supported the market earlier this month, the $0.381 and $0.35 levels are now considered close support. Losing all these levels could favor a further decline in the market.

On the way up, the resistance levels to watch for a test are $0.423 and $0.457. A break above this resistance could push the price to $0.49 and $0.52.

Important resistance levels: $0.423, $0.457, $0.49

Important support levels: $0.381, $0.35, $0.317

• Price: 0.394 USD
• Trend: Bullish
• Volatility: High

Disclosure: This is not trading or investment advice. Always do your research before purchasing any cryptocurrency or investing in any service.

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