Cardano’s ADA Price Resistance
It’s been a particularly bullish start to the week for Cardano’s ADA. Following last week’s 14.03% rally and the previous week’s 22.25% surge, it’s been 3 consecutive days in the green.
For the current week, Monday through Wednesday, Cardano’s ADA was up 28.8%. Tracking the broader market early on, Cardano’s ADA fell to a Tuesday low $0.063230 before making a move.
Steering clear of the week’s first major support level at $0.0605, Cardano’s ADA rallied to a current week high $0.101622.
The surge saw Cardano’s ADA break through the first major resistance level at $0.0782 and second major resistance level at $0.0853. The third major resistance level at $0.1030 pinned Cardano’s ADA back from more material gains in the week.
Having tracked the market through the early part of the week, Cardano’s ADA bucked the trend on Wednesday. While a number of the top 10 majors hit reverse, Cardano’s ADA managed to recover from a late slip to close out the day with a 5.6% gain.
In spite of 6 consecutive weeks in the green and the current week’s rally, the extended bearish trend remained intact. Cardano’s ADA continued to fall short of the 23.6% FIB Retracement Level of $0.1125, following 7th December’s new swing lo $0.02724.
It’s been a spectacular 2-months for Cardano’s ADA having moved into the top 10 by market cap. Cardano’s ADA has now leapfrogged Stellar’s Lumen and Tether into the number 8 spot.
At the time of writing, Cardano’s ADA was up by 2.67% to $0.09383. Moves through the early hours saw Cardano’s ADA recover from a morning low $0.087899 to a morning high $0.094796.
In spite of the pullback, Cardano’s ADA managed to hold above the second major resistance level at $0.0853.
For the remainder of the week
A hold onto $0.090 levels through the middle of the week would support another run at $0.10 levels.
Support from the broader market would be needed, however, for Cardano’s ADA to break through the current week’s high $0.10162 to bring third major resistance level at $0.1030 back into play.
Barring another broad-based crypto rally, however, we would expect Cardano’s ADA to come up short of $0.10 levels.
Failure to hold onto $0.090 levels could see Cardano’s ADA hit reverse ahead of the weekend.
A fall back through the second major resistance level at $0.0853 could bring $0.070 levels back into play before any recovery. Barring a crypto meltdown, we would expect Cardano’s ADA to steer clear of sub-$0.08 levels, however. In the event of a broad-based sell-off, Cardano’s ADA could fall back through the first major resistance level at $0.0782 before any recovery.
A bounce back from a late slide to $0.084 levels on Wednesday will provide support in the coming days.
Looking at the Technical Indicators
Major Support Level: $0.0605
Major Resistance Level: $0.0782
23.6% FIB Retracement Level: $14.6
38.2% FIB Retracement Level: $12.6
62% FIB Retracement Level: $9.4