Widely followed analyst and trader Jason Pizzino is urging caution on Cardano (ADA) amid the eighth-largest crypto asset by market cap recording a bounce in price.
Pizzino tells his 278,000 YouTube subscribers that Cardano could drop further below the 22-month low it reached earlier this month unless it consolidates above the current price.
“We had the final capitulation zone here – $0.17 to $0.33. We hit dead on $0.33 so far. I’m looking further down unless ADA can get back above these previous support zones and that is around $0.40, $0.41 and consolidate above those levels and then look to take out the logarithmic bear market downtrend.”
Cardano is trading at $0.4052 at time of writing, up by a little over 10% over the past seven days.
The crypto analyst and trader says that for Cardano to confirm a bullish trend, the eighth-largest crypto asset by market cap needs to rise above the resistance zone around the $0.50 – $0.70 price.
“So $0.33 could be the low. But we need to wait and see whether we get some confirmation of consolidating above $0.41 and then breaking these previous levels of $0.51, that’s the 50% level [on the Fibonacci scale]…
So $0.50 and $0.70 are the key levels for ADA to start to climb above, in order for ADA to then start to flip bullish.”