Cardano (ADA) and Fetch.ai (FET) are both at critical junctures according to a recent analysis by Rekt Capital, a research outfit focused on cryptocurrency.
Cardano on Shaky Ground
The report, published on July 6, 2024, details how Cardano recently emerged from a price accumulation range between $0.2449 and $0.4015. This zone signified a period of consolidation where the price fluctuated within a specific band. While ADA initially broke out in late 2023 suggesting an uptrend, it’s now revisiting the previous trading zone.
Crucially, there are signs that the upper limit of the range ($0.4015) might be acting as new resistance, potentially confining the price within the boundaries for some time. Rekt Capital suggests that a decisive close below this level could trigger a deeper plunge back into the accumulation zone.
The biggest concern lies at the support level around $0.2449. If the price falls through this zone, it could lead to a significant drop of nearly 40%. This bearish scenario can only be avoided if ADA manages to recapture and close above the resistance at $0.40 this month.
Fetch.ai Seeks Breakout for Reversal
The outlook for Fetch.ai (FET) is similarly dependent on a key price level. The token has been on a downtrend for the past four months and is currently testing a critical support area – its all-time high from late 2021 near $1.195.
A successful retest at this point could ignite a potential rally. However, a breakdown below this level would transform the support into resistance, potentially amplifying the downtrend and pushing the price as low as $0.8 – a significant support zone in 2021.
Another factor to consider for FET is a descending trendline that has been capping its price. Rekt Capital emphasizes that a breakout above this trendline is essential for the token to reverse its downtrend and enter a bullish phase.
Overall, both Cardano and Fetch.ai face make-or-break situations in the coming days. ADA risks a steep correction if it fails to reclaim lost ground, while FET needs to overcome resistance levels to reverse its downtrend.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. It is essential to conduct your own research before making any investment decisions.
