The range from $0.98 to $1.47 was yet unbroken for Cardano. At the time of writing, ADA had bullish impetus in the short-term and could initiate a recovery toward the range highs once more. In other news, the founder of Cardano Charles Hoskinson hinted at Cardano’s plans for NFTs in a live stream on Periscope. He noted that things can move very quickly in crypto land and even suggested that Ethereum might migrate to Cardano one day.
Cardano 1-hour chart
Source: ADA/USDT on TradingView
The levels plotted in pale yellow are the levels of importance within the range from $0.98-$1.47 that ADA has established since late February. These levels are plotted using Gann’s rule of eighths, and the 25% level at $1.08 can be seen to provide some support to the price.
At the time of writing, ADA followed Bitcoin’s short-term move upward; Bitcoin recovered from $50,500 to trade at $53,400 at the time of writing, and ADA also recovered from $1.1. It remains to be seen if this is a bounce or the beginning of a recovery.
Technical indicators across multiple timeframes showed that, while short-term momentum was bullish, ADA has not confirmed that it has begun to recover toward range highs yet. The reaction of the price at the mid-point of the range would be quite important.
Reasoning
The hourly chart showed a rising RSI, noting increasing upward momentum and $1.2 was likely to be tested. However, OBV has been in a steady downtrend, and buying volume has not yet stepped in with force to cause a surge for ADA.
A rejection at $1.2 can be used to set bids at $1.08 and $0.98 while flipping $1.2 to support in the next 48 hours will be a sign of bullish strength.
Conclusion
The mid-point of the range is the most important level within a range, and if it is flipped to support soon, a long position can be entered at $1.2 upon retest as support. A stop-loss can be set at $1.16.
