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Cardano's price action this week is not so exciting, but it is still important for short-term traders. After hanging around the middle of the Bollinger Bands for a few sessions, ADA has now dipped just below it - currently at $0.7709, compared to the mid-band at $0.7712 - and while the difference is small, it is still important in setups like this.
The recent attempt to push higher - a brief move above that middle line - met with immediate resistance and did not hold. That rejection was not a huge shock, but it was clear enough to show that buying pressure is not strong enough right now to change the trend.
Instead of continuing to rise, it has kind of faded back into the range, and now ADA is sitting right below a key technical level.
The Bollinger Bands have been getting narrower, and in most cases, that kind of compression means a bigger move is coming. The question is whether that move will break higher or lower. Right now, with the price slipping under the midline and staying there, it looks like the bias is leaning toward the downside.
If the pressure keeps building and sellers start to take charge, the next level to watch is the lower band, which is currently at around $0.6968. Thus, should the market keep losing steam, that area will probably be the next logical stop. This is not looking like a sudden drop - more like a slow, steady slide, at least in the short term.
To change the picture, ADA would need to reclaim the mid-band convincingly - not just tag it with a wick, but close above it with clear volume support. If we do not have that, traders might start thinking that any little jumps are just short-lived moves in a bigger, slow drift toward support.
U.Today Editorial Team
Vladislav Sopov