Connect with us

News 1

Cardano Price Analysis: 26 March

Published

on

Source: Pixabay

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

Cardano Price Analysis: 26 March

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.

Where to Invest?

Subscribe to our newsletter

Having studied Chemical Engineering, Akashnath's focus is on the UK and Indian markets and especially crypto assets. He is devoted to technical analysis and is always on the lookout for investment opportunities.