Analysis
Cardano’s long traders could take advantage of this
After dropping to the $1-mark on 20th July, Cardano gradually climbed higher and flipped two bearish trendlines that extended from its May highs. However, the lack of strong volumes often resulted in measured price movement as opposed to a sporadic hike in value. This has not deterred its technicals, which continue to paint a bullish picture. At the time of writing, ADA traded at $1.57, up by 6.8% over the last 24 hours.
ADA Daily Chart
While ADA may not have registered sharp movement when compared to some its counterparts in the past week, its losses have also been in check. What works for ADA is the fact that low volatility has often aided prices when the broader market witnesses a decline. This has allowed ADA to climb above key levels. and sustain its price movement on the charts.
The Fibonacci tool was used on ADA’s ATH in May and swing low of $1 to ascertain some potential targets on its daily chart. ADA’s press time level stood at $1.57 which was above with its 14th April high and 38.2% Fibonacci level. Over the coming week, additional areas to watch out for lay at the 50% ($1.73) and 61.8% ($1.90) Fibonacci levels.
The Visible Range noted a high interest for ADA at the aforementioned levels but little above $1.80. This meant that sellers can step into the market anywhere below $1.80, but successfully closing above this point would allow for a faster recovery towards $2.5. Conversely, bulls must be on alert in case of a drop below $1.34 as this would leave ADA vulnerable to further retracements.
Reasoning
The Relative Strength Index headed into overbought zone for the second time in three days which did warrant stabilization, but losses were expected to be above the $1.50 range which now acted as support. Meanwhile, Awesome Oscillator formed higher peaks and confirmed with ADA’s price action. MACD also mirrored bullish market sentiment.
Conclusion
ADA was backed by bullish technicals and its long-term outlook seemed bright. A minor retracement was in the offing but losses were likely to maintain above $1.50- something that long traders could even capitalize on. The last stand in its attempt to rise above $2.5 was at $1.90 due to the presence of weak resistance areas.
