Cardano rallied earlier this week, but now the price has hit a key resistance.
Key Support levels: $0.31
Key Resistance levels: $0.37
1. Resistance Stops the Rally
Since September 7th, the price entered a rally that saw the price quickly move from the 31 cents support to the key resistance at 37 cents. Once Cardano’s price approached the key resistance, sellers returned and managed to turn around the price action into a corrective move.
2. Short-Term Momentum is Bearish
On lower timeframes, such as 12h or 4h, the momentum has turned bearish in the past two days. However, this may not last and see the price bounce back around 34 cents to have another try at breaking the key resistance.
3. Buyers Still Dominate on Weekly
If we switch the timeframe to the weekly chart, we can see that buy volume remains strong. Buyers dominated in the past four out of five weeks. Despite this pullback, momentum could return to favor bulls later on. To get confirmation, the price has to break above 37 cents.
