There has been a looming decision on the approval of a Cardano (ADA) spot ETF, with the final deadline set for March 27th.
Recent large movements of Cardano tokens by whales have raised questions about whether this is accumulation ahead of a significant decision or merely asset distribution.
An examination of the price charts provided some valuable insights into the current market sentiment. ADA has been experiencing a rapid decline and might target the $0.6 mark in the upcoming weeks.
Key Levels to Watch: $0.9 and $0.74
The bearish swing pattern of ADA became apparent as the November rally surpassed the 2024 highs but subsequently formed lower highs and lower lows.
Notably, the recent low hit $0.845, while the most recent lower high was at $1.13 in January. This led to a sharp decline in prices, shifting the swing structure towards bearish territory.
Analysis of the Fixed Range Volume Profile from February highlighted three significant high-volume nodes at $0.74, $0.59, and $0.45, with the Value Area high at $0.876. The $0.876 level has recently acted as a support level for Cardano.
A positive price bounce from the $0.68 level indicated some bullish movement in shorter time frames, with ADA surpassing the high-volume node at $0.74.
Although the Awesome Oscillator has shown dominant bearish momentum, the intensity has decreased in the past week following the rapid price bounce.
Considering the bearish structure, it is likely that the price bounce could push towards the $0.87-$0.90 range before the downtrend resumes.
To reverse the downtrend trend, Cardano bulls must prevent the formation of lower lows. This would require the establishment of a trading range, which has not materialized at the time of writing.
Therefore, the Cardano price outlook for the near future points to a continued downtrend. While there is a possibility of a trading range forming between the $0.68-$0.81 levels, this process may take a week or two to unfold.
Disclaimer: The information provided is not intended as financial, investment, or trading advice. The content reflects the personal opinion of the author.