Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the opinion of the writer.
Bitcoin [BTC] fought its way back above the $20k mark after floundering about the $19.8k mark the previous day, to trade at $21.1k at press time. Cardano [ADA] has been trading within a range for a little over a month now. This presented a chance for traders to enter the market when the price reached either extreme of the range. Cardano saw a bounce from the range lows at $0.44 and presented a possible buying opportunity in a lower timeframe.
ADA- 1 Day Chart
On the daily timeframe, ADA had traded between the $0.44 and $0.65 support and resistance levels for nearly six weeks. The mid-point of the range lay at $0.54, and ADA exchanged hands at $0.49 at press time.
The mid-range represented a tough resistance to the bulls, alongside the range highs. Therefore, the mid-range level at $0.54 can be used to take profit on any buys from lower down the charts.
Another factor that the daily timeframe unearthed was that the $0.488-$0.5 area acted as resistance. The current trading session was within this area but had not yet faced rejection.
ADA- 1 Hour Chart
The hourly timeframe showed the $0.49 level to have some importance over the past week, as it has acted as both a support and resistance to ADA. Moreover, on the lower timeframes, the $0.5 was formidable resistance over the past few days. In the same time period, the price has formed higher lows as it pushed toward the resistance.
Ergo, the lower timeframe bias was bullish. The two Supertrend indicators also agreed as they flashed a buy signal for ADA on the hourly chart. But where would an ideal entry be?
The Stochastic RSI, in conjunction with the Supertrend indicator, can be used to time a lower timeframe entry. At press time, the Stochastic RSI formed a bearish crossover and headed lower. If it reaches the oversold territory, traders can watch ADA more closely. A bullish crossover in oversold territory, while ADA remained above the Supertrend indicators on the H1 timeframe, could be used to enter a long position.
To support the bullish notion, we have both the RSI and the AO showing bullish momentum. The RSI rose above the neutral 50 line and has stayed above it. The Awesome Oscillator (AO) was also above the zero line.
At the same time, the OBV has steadily climbed higher. This suggested the presence of buying pressure behind Cardano in the past few days.
Above the hourly timeframe, the $0.54 area was highlighted as a strong resistance level. On the hourly timeframe, the $0.488-$0.5 area could offer traders an opportunity to buy ADA, with a bullish target of $0.53-$0.54 to take profit at. A stop-loss just beneath the $0.478 mark can be set. A session close below $0.48 would break the previous higher low, and flip the structure to bearish.
Cardano: Where ADA’s price could head next after reaching its long-term support
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
As anticipated in the previous article, Cardano’s [ADA] near-term revival saw a drawdown from its immediate supply zone near the $0.63-level. After jumping above key levels, the recent losses have pulled ADA below the resistance of its 20 EMA (red).
The ongoing trajectory would likely favor the sellers in the coming days. But an opportunity along the OBV could open a short trading window for the bulls.
At press time, ADA traded at $0.5145, down by nearly 10.34% in the last 24 hours.
ADA Daily Chart
With the price action swopping below the 20 EMA, the short-term narrative for ADA flipped back toward the bearish side. The previous bullish efforts saw a decent effort saw a strong rejection of higher prices as the selling volumes registered a spike.
The bearish engulfing candlesticks alongside the south-looking 20 EMA have given the bears an added thrust to impede the buying efforts.
As the price action approaches its 16-month support in the $0.47-$5 range, any revival could open doorways for a recovery toward the Point of Control (POC, red). Looking at the current buying volumes, the bears could continue to assume control over the trend near the POC.
The two-month trendline support (white, dashed) coincided with the immediate demand zone to potentially provide a reliable testing range before a rebound.
The Relative Strength Index (RSI) took a relatively bearish stance while aiming to test the 38-mark support. The investors/traders must watch for either a bounce-back or breach of this mark before placing bets.
Further, the OBV saw a bullish divergence after the indicator’s higher troughs over the last 12 days. A resurgence from its immediate trendline support could help buyers defend the immediate demand zone on the chart.
While the indicators tilted toward the bearish side, ADA could see a near-term revival from its demand zone. The POC level would likely help the bears maintain their edge in the coming sessions.
At last, traders/investors should keep a close watch on Bitcoin’s movement and its effects on the wider market to make a profitable move.
Crypto Community At CoinMarketCap Predicts $1 Cardano By June 30
Cardano’s price has been growing in recent weeks while the rest of the cryptocurrency market has been falling. This trend has encouraged some in the crypto community to be optimistic about its future price and make it a bright light among digital coins and tokens.
According to the most recent predictions made using CoinMarketCap’s Market Estimation tool, which allows users to make crypto price predictions and check their average score, the community expects this crypto to trade at roughly $1 by the end of June.
Related Reading | Crypto Analyst Says Cardano, Avalanche and Two Others Have Potential To Perform Well In Bear Trend
CoinMarketCap Price Estimation Pool Figures
Cardano hit a price of $0.4 on May 12 and then quickly reversed to $0.59 on May 13. The price then gradually dropped to $0.44 over the next few weeks. The price was still 10% higher than the low before, but we could call this a test of the bottom. ADA surged almost 50% since the test happened.
ADA price estimates show an average price of $1.034 on June 30, 2022, which is $0.423 up from the current price or a 69.23% increase. As per the data obtained on May 31 from the analytics portal CoinMarketCap, Cardano was trading at $0.6698, a gain of 28.77% on the day and a gain of 29.10% compared to seven days earlier.
According to the poll, there are about 24,430 people who have voted on May 30. 15,911 votes predicted that the price of ADA will rise relatively less by July 31- to $0.9399.
Meanwhile, under statistics acquired on May 31 from Cardano Blockchain Insights, Cardano is back to having close to $500 million in its treasury or exactly $498,403,802.47. Through a voting procedure, the Cardano treasury is utilized to provide funds for the development of Cardano activities.
Other Cardano Developments
Like the hardfork approaches, other developments include the average Cardano blockchain load lasting reasonably high, at 64% on average in May. This implies that roughly 64% of blocks were utilized during this month.
In other good news for the chain, in the month leading up to May 20, it gained more than 2,000 new wallets every day, for a total of 70,211 between April 19 and May 19. According to data from Cardano Blockchain Insights, it had 3,357,509 user’s wallets as of May 30.
Related Reading | TA: Bitcoin Price Resumes Decline, Can The Bulls Save This Support
In addition, the successful introduction of ADACash gives Cardano a boost. On the other hand, developers aren’t slowing down when it comes to new ADA-USD projects. They market these projects as a third-generation blockchain after Bitcoin and Ethereum.
Cardano is working on new projects, such as a marketplace for NFTs and a DeFi transaction exchange. These projects will take time to launch, but they demonstrate the value and capability of the Cardano blockchain. Which could lead to future growth in the ADA/USD price.
Featured image from Pixabay, and chart from Tradingview.com
Is Cardano’s [ADA] rally probable yet? The answer might impress you
Cardano’s [ADA] price has been under a strong bearish influence, especially since dropping from the vital $1.2-resistance. After falling below the 20 EMA (red) and 50 EMA (cyan), the altcoin was on a streak of liquidations while correlating with the broader sell-offs.
Altering the overall outlook was still a long shot for the bulls while they had to find renewed buying pressure to snap the constraints of the 23.6% Fibonacci resistance. At press time, ADA traded at $0.5307, down by 3.12% in the last 24-hours.
ADA Daily Chart
Aggressive sell-offs from the $1.2-ceiling resulted in a 67.35% drop from ADA’s April highs. As a result, after falling below its Point of Control (POC, red), ADA poked its 15-month low on 12 May. On its way south, the 61.8% Fibonacci level held up well after restricting the falling wedge breakout. While hampering the bear run, buyers finally induced a few green candles but failed to support it on elevated volumes.
Over the last six days, the altcoin saw an expected bearish pennant breakout as the price action approached the 23.6% level barrier. With an overextended gap between the 20 EMA and 50 EMA, the sellers exhibited their superior edge in the current scenario.
A continued revival from its immediate support could see an anticipated hurdle in the $0.59-zone near the 23.6% level. However, without sufficient volumes, the buyers would find it difficult to challenge the resistance offered by the alt’s near-term EMAs. The buyers would now aim to lower the gap between the 20/50 EMA in the coming days.
The Relative Strength Index suggested that sellers have a clear advantage in the current market structure. The buyers needed to push the RSI above the 38-level to propel a short-term rally beyond the 23.6% level on the charts.
An inability to pick Aroon up (yellow) from the zero-mark could lead to further undesired losses. AN eventual recovery from this level would open doorways for a smoother recovery.
Looking at the current bounce-back from the $0.5-level, ADA could slam into the 23.6% level for testing its resistance. An eventual break above this level could pave a path to challenge the constraints of its near-term EMAs. But the threats along the Aroon up indicator could delay the potential of a bull run.
At last, ADA shares a high correlation with the king coin. Thus, traders/investors should keep a close watch on Bitcoin’s movement to make a profitable move.
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