Cardano has followed up on the declines of last week to retest a support level at $0.08.
$0.08 was an important level in the weeks after Cardano initially launching, acting as a resistance point.
The price briefly dropped below the level last week, but buyers quickly brought the price back above.
The drop below $0.08 last week failed to close below on the daily chart.
Buyers quickly came in to bring the price back above.
The price has tested the level numerous times already this week and has dropped below today.
Numerous tests of a level increase the odds that the price will break below with fewer buyers to hold the level on each test.
Both the daily MACD and RSI have been declining since the start of April representing the amounts of selling pressure building.
The price has dropped and closed below $0.08 on the 4-hour chart.
This has been followed up with two small-bodied candles recording increases.
The small-bodied candles reflect uncertainty from traders and the price is likely experiencing some selling pressure at $0.08 which may now be acting as resistance.
The price increases from two weeks ago managed to close above $0.42 on the weekly chart which is the level where price underwent sharp declines in November.
However, the price failed to follow this up last week and quickly found selling pressure to bring the price back below the level.
After dropping below the November breakdown level, the price declines continued to test $0.34 as support.
$0.34 was a former resistance level prior to the increases two weeks ago and is now likely acting as support.
A divergence between the price and RSI preceded the declines recorded this week and last.
The RSI failed to overcome its last high recorded at 78.
However, the price continued to form a higher high indicating that the price increase wasn’t being matched by a corresponding increase in buying pressure.
- Both Cardano and ICX follow up the last week of drops with more losses.
- Cardano is after dropping below a key level at $0.08 after numerous tests.
- A divergence between the price and RSI in ICX preceded the price drops of this week and last.
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