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Cardano [ADA] price set to bounce off resistance and head downwards; Here are the important levels to look out for

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Cardano [ADA] price set to bounce off resistance and head downwards; what are the important levels to look out for?
Source: Unsplash

Cardano, the tenth largest cryptocurrency on CoinMarketCap had a decent rally over the past few days. The price of the cryptocurrency surged by 133% since December 16, 2018. However, the rally seems to be coming to an end as price candles have formed at the end of the ascending channel/rising channel.

Will the rally continue? Will the rally hit a roadblock and bounce back? If so, what are the levels to look for?

1-day

Source: TradingView

The one-day chart of Cardano showed the formation of a rising or ascending channel. This is a bullish pattern, provided a few conditions are met. These conditions include rising volume and divergence between price and other indicators, like RSI.

However, the current channel shows a higher probability of the price breaking to the downside due to two reasons.

  1. The volume is declining after reaching a peak on March 23, 2019
  2. There is a resistance [$0.06925] at the end of the channel

These two reasons are further corroborated by the Relative Strength Index, which was in the oversold zone. This indicated that the price has exhausted its buying momentum and has nowhere left to go, but downside.

Fibonacci Retracement Confirmation

Source: TradingView

After the previous surge in price took place between December 16, 2018, and January 10, 2019, the prices corrected from $0.05245 to a support at $0.03617, which also happened to be closest to the 61.8% Fibonacci level.

The Fibonacci Retracement for ADA in the current ascending channel shows a possible retracement to 61.8%, which also happens to be a support level at $0.04962.

Conclusion

Cardano seems to have exhausted its bullish momentum as it rallied one last time. The volume of Cardano showed a possible move to the downside. The following levels could be a possible correction for ADA if it broke to the downside, i,e $0.04962. Other supports for ADA are at $0.04523, $0.03617, and $0.02720.

The Cardano Ecosystem

There were quite a few updates, ranging from managerial restructuring to exchange announcements in March 2019, all of which could be speculated to have caused a surge in price. The most recent one was the integration of Cardano [ADA] with the cryptocurrency hardware wallet Ledger.

Additionally, Cardano became a founding member of the International Association for Trusted Blockchain Application [INATBA].

Other major updates in the Cardano ecosystem include the launch of the 1.5 main net. The release was part of the concluding stages of the Byron phase of development, including an improved proof-of-stake protocol. This development would ensure better block storage, the inclusion of the Daedalus wallet for Linux, the Cardano testnet, and an increase of Rust tools and other features within the coin’s ecosystem.

Further, the Shelley update, which is yet to hit Cardano is much-awaited and a lot of users and ADA enthusiasts believe that it will help Cardano become more decentralized.





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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.

Analysis

EOS rises by over 6%; Ripple’s XRP and Ethereum follow suit prompted by Bitcoin’s rally

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EOS rises by over 6%; Ripple's XRP and Ethereum follows suit prompted by Bitcoin's rally
Source: Pixabay

Bitcoin, the largest cryptocurrency by market cap breached the $9,000-mark anchoring another market spin towards the bulls. The collective market cap stood at $285 billion, at press time.

EOS:

Since the onset of 2019, Block.one, the parent firm of EOS had rolled out several significant technological upgrades on its EOS blockchain. Even as the price movement was underwhelming for the most part of the year, the sixth largest digital asset by market cap, EOS gained strong market support. At press time, EOS climbed by 6.11% and stood at a price of $7.13 with a market cap of $6.5 billion. The trading volume recorded for the past 24 hours was $2.55 billion.

Source: TradingView

Ethereum:

With the much-anticipated Ethereum 2.0 blockchain rollout, the second largest cryptocurrency, on CoinMarketCap, garnered gained bullish momentum against the US Dollar. At press time, ETH rose by 3.67% over the past 24 hours and was priced at $275.1. The digital asset registered a market cap of $29.3 billion and a 24-hour trading volume $8.49 billion. Additionally, 4.2% of the trading volume was recorded at ZBG via the trading pair ETH/USDT.

Source: TradingView

Ripple:

Ripple’s focus has always been disrupting cross-border payment space following which the Brad Garlinghouse-led firm introduced new technologies, features, and network updates. Its native token, XRP, significantly leveraged from the recent developments as well as the market recovery steered by BTC.

At press time, the third largest digital coin was valued at $0.42 after posting 3.41% gains in the past 24-hours. XRP held a market cap of $17.92 billion and registered a 24-hour trading volume of $1.5 billion. 4.4% of XRP was being traded at ZBG via XRP/USDT.

Source: TradingView





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