Cardano’s intense uptrend has started showing signs of faltering as the aggregated cryptocurrency market flashes some warning signals.
Although the token is still trading just a hair below its 2020 highs, it has now faced two harsh rejection at $0.135 – elucidating that this is a massive resistance level.
Overnight, sellers pushed ADA to lows of $0.119, but the buying pressure it found here proved to be quite significant.
Although they have since stabilized the crypto above $0.12, it does appear that Cardano is forming a striking correlation to Bitcoin and the aggregated market.
The imbroglio on Twitter relating to multiple high-profile accounts being breached and pushing a Bitcoin scam sent jitters throughout the entire market. This appears to be the impetus for ADA’s latest decline.
Where the token trends next will likely depend on whether or not buyers are able to surmount its crucial near-term resistance.
One analyst is noting that Cardano is primed to see further upside despite the recent market-wide downturn.
Cardano Faces Harsh Rejections at 2020 Highs
At the time of writing, Cardano is trading down over 4% at its current price of $0.125.
This marks a slight rebound from daily lows set within the sub-$0.12 region. It also marks a slight climb from recent highs of $0.135.
It is important to note that this latest decline has come about in tandem with the entire market, signaling that a further slide in Bitcoin’s price could hamper ADA’s growth.
It has now faced two harsh rejections at its all-time highs. This level could prove to be a long-term top.
Despite this, as NewsBTC reported earlier this week, there is a multitude of technical factors counting in Cardano’s favor.
According to the analyst cited within the report, some of these factors include a high volume on breakouts, recent long liquidations, growing OI, and negative funding.
“ADA: Volume high on the breakouts, bunch of long liqs recently, OI keeps growing and funding going negative again. While most are calling for a top, I think this keeps going,” the analyst explained.
These factors may help boost the cryptocurrency as it trades against a backdrop of weakness in the rest of the market.
Analysts Flip Long on ADA Despite Current Weakness.
Presently, analysts are optimistic regarding Cardano’s near-term outlook.
One respected pseudonymous trader noted in a recent tweet that the token is “primed for continuation,” and could see some notable upside if it is able to break its local highs.
“ADA appears primed for continuation, beautiful trade if local high breaks.”
Image Courtesy of Lucid. Chart via TradingView.
While looking towards that above chart, Cardano could see an over 20% upswing against Bitcoin if it can continue pushing higher.
Featured image from Shutterstock. Charts from TradingView.