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Cardano price is still under pressure after sliding through several critical support levels. The asset continues drifting down, with the sellers having strong control. Traders are now watching to see if the ADA price can establish a bearish consolidation before reaching its next major demand zone.
Cardano Price Nears a Critical Historical Support
Cardano price moved towards the $0.30 region after falling sharply amid multiple layers of support. Ali Charts observed that the $0.30 level has been a key area of reaction in previous market cycles.
His chart showed several bounces forming along this line during major downtrends. Because of this, the zone has become the next line of defense for buyers.
As selling continued, the top altcoin lost support at $0.58 and then at $0.42. Each breakdown increased downward momentum and increased the distance from previous consolidation highs. Despite periodic attempts to stabilize, the overall trend remains heavily bearish.
Furthermore, the current structure shows a repeated pattern of down highs from September. Traders, therefore, anticipate that volatility will be higher as the price approaches the next demand band.
Liquidity Tests Suggest Potential Short-Term Response
Cardano price dipped into a deep liquidity pocket earlier today. BullishBanter explained that the ADA price entered an area where there were significant reactions formed before.
His chart showed an obvious sweep of sell-side liquidity, a phenomenon frequently observed before potential reversals. Since short-term bounces often follow liquidity hunts, traders are closely watching this interaction.
However, any recovery has to recover critical levels above the current structure. BullishBanter proposed that a solid bounce could be at $0.79 with buyers returning. Yet, price must first contain the lower boundary and produce a convincing shift in the market’s structure.
Additionally, volume will have to confirm renewed buying interest before the next move. Without such confirmation, reactions could be confined to minor intraday retracements.
Market Data Reveals Sharp Losses and Increasing Volume
Broader market data showed a sharp monthly decline. Cardano price traded near $0.40 today after another deep intraday slide. According to the last metrics, the ADA price fell more than 12% in the last 24 hours. Trading volume surged by over 80%, indicating increased activity and risk.
Furthermore, the overall market environment shows the uncertainty over major altcoins. FDV is currently around $18 billion, and the circulating supply keeps increasing. The supply expansion creates extra pressure on the recovery attempts.
Meanwhile, charts from top aggregators indicate a steady trend of lows forming lower throughout November. As a result, investors tend to be cautious until ADA has established a strong base.
Fibonacci Levels Reveal More Downside Risk
Additional risk comes from Fibonacci projections. Man of Bitcoin pointed out that Cardano is close to the 100% Fibonacci extension at $0.427. His chart showed that a descending corrective wave is approaching completion.
Furthermore, the 1.236 extension is close to $0.393, and the 1.38 extension is in line with $0.374. These levels form a cluster of points that are potential reaction points.
Moreover, price is still well below the descending trendline. As long as ADA trades under this structure, there is downward pressure. Man of Bitcoin pointed out that trendline rejection keeps deeper targets in the game.
Therefore, traders may be faced with prolonged declines unless ADA recovers the broken structure. The close concentration of these support reactions could be volatile once the buyers intervene.
