Weekly Price Overview: Cardano, April 24

After such a sharp decline, a 'V' shaped recovery is unlikely because traders who had purchased at higher levels and were watching their portfolio sink to a huge loss would bail out once their buy levels are reached.

Short-term traders, who have purchased near the lows will also book profits on rallies.

The important levels to watch out on the upside are 38.2 percent Fibonacci retracement level of 0.00004541 and the 50 percent retracement levels of 0.00005427.

Let's see how to use the levels above for trading.

The daily chart shows how the current pullback has stalled right at the 23.6 percent retracement levels.

If the break out fails, then most of the traders who have purchased at lower levels will book out of their positions resulting in a dip.

How to trade the ADA/BTC pair now?Long-term traders should accumulate positions on dips towards the 50-day SMA and keep a stop loss at 0.00001600.

The target of this trade is 0.000054 and higher.

Short-term traders, who have purchased at lower levels can hold their positions with a stop loss at 0.00003 levels.

Fresh positions by short-term traders should be only considered on a breakout and close above 0.000035 levels with a close stop loss.