Cardano (ADA): The overdue upward move is a long time coming

  • Course (ADA): $0.47 (previous week: $0.44)
  • Resistances/Goals: $0.50, $0.53, $0.58, $0.70, $0.75, $0.92, $1.00, $1.10, $1.19, $1.25, $1.42, $1.59
  • Supports: $0.44, $0.40, $0.33, $0.26, $0.19

Cardano Recap

  • After the significant sell-off in May of this year, Cardano was able to recover up to the 23 Fibonacci retracement at USD 0.64, but it was not enough for a further price recovery.
  • ADA price has been trading in a tight range between $0.44 and $0.50 for the past few weeks.
  • One of the reasons for the poor performance in recent weeks can also be seen in the postponement of the Vasil upgrade, which the Cardano community is eagerly awaiting.
  • The first relevant resistance is waiting on the upside at USD 0.50. A preliminary decision is to be planned at the latest in the area of ​​USD 0.53. In addition to the super trend, the EMA50 (orange) can also be found here.
  • On the downside, the Cardano price is well supported in the range between USD 0.43 and USD 0.44. Only a sustained fall below the annual low of USD 0.40 makes a next downward movement likely.

Bullish Scenario (Cardano)

  • The ADA course has been listlessly trading sideways for the past few days. As long as the bulls can defend the red support zone at $0.44, a fresh attack towards $0.50 can be expected at any time.
  • If Cardano stabilizes above USD 0.50, there will be a short-term directional decision at USD 0.53. Recapturing this price mark activates the turquoise resist zone between USD 0.63 and USD 0.66. Cardano failed here several times in the previous months.
  • If stabilization above the 23 Fibonacci retracement based on the daily closing price is successful, investors will focus on the yellow resistance area between USD 0.70 and USD 0.75.
  • Increased resistance from the bear camp is already to be planned in this area, as this zone represents the demolition edge before the sell-off.
  • Only when this zone can also be broken through sustainably will the chart picture continue to brighten and the EMA200 (blue) should be targeted as a target.

Back towards $1.00

  • If there is no significant course correction here either and Cardano is heading further north, the next relevant resistance area awaits in the orange zone between USD 0.91 and USD 1.00.
  • For the time being, this zone is to be regarded as the maximum ascent target. Fresh bullish momentum from cryptocurrency Bitcoin (BTC) is imperative for ADA price to surge through this strong resistance area.
  • If the bulls then succeed in allowing the ADA price to rise dynamically above this area, a direct jump in price up to USD 1.10 is likely. This is where the 50s Fibonacci retracement of the overall trend movement runs.
  • If Cardano stabilizes above the psychological USD 1.00 in the medium term, the buyer side will do everything possible to start the red resistance area between USD 1.19 and USD 1.25. There is a strong horizontal resist here, which the ADA price had already bitten its teeth into in the first months of trading this year.
  • The long-term price targets at USD 1.42 (61 Fibonacci retracement) and USD 1.59 are only activated when Cardano sustainably breaks through this strong resistance area at the daily closing price. More price potential cannot be derived from the current chart view.

Bearish Scenario (Cardano):

  • The bears still have the scepter in their hands, but the sell side also failed to sell Cardano back below USD 0.43 towards the year low.
  • However, as long as the ADA price is capped below USD 1.00, renewed selling attacks can be expected at any time.
  • If the seller succeeds in pushing Cardano’s price below the red support zone at the end of the day, the year’s low at 0.40 will come back into focus.
  • The unchanged weak trading volume is an indication that the bulls have not yet entered Cardano sustainably.

The correction could extend further

  • If the seller side is able to break through the strong support at USD 0.40 with renewed weakness in the overall market, the correction will extend to the lower edge of the green support zone at USD 0.33.
  • The first courageous investors are likely to make acquisitions here again. However, if this support level is also broken through sustainably, an expansion of the correction in the direction of USD 0.26 should be planned.
  • If the bulls cannot sustainably turn the ADA course northwards here either, a sell-off to between USD 0.17 and USD 0.19 cannot be ruled out in the coming months.
  • As long as the red support zone around USD 0.43 is not breached, investors can continue to make additional purchases. A stop loss below the previous low for the year should still be set.

Disclaimer: The price estimates presented on this page do not represent buy or sell recommendations. They are merely an assessment by the analyst.

The chart images were created using TradingView created.

USD/EUR exchange rate at the time of going to press: EUR 0.98.

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