Cardano has seen a small 5% price bounce over the past 24 hours, bringing the current price for the cryptocurrency back above the $0.08 level to where it is currently trading at around $0.082. The cryptocurrency has bounced at major levels of support which has now pushed the trajectory for the token to head toward $0.09 and beyond.
Cardano is presently ranked in 10th position on the top cryptocurrencies by market cap valuation. It presently holds a $2.14 billion market cap valuation, sitting $330 million behind 9th position holder, Stellar.
In this article, we will take a look at the Cardano market and highlight the resistance for the bulls on the way toward $0.09 and beyond.
As previously mentioned, the Cardano market had previously slipped from the high but had found strong support at the 200 day moving average level, where a rebound had occurred. The cryptocurrency has seen a strong turnaround in 2019 after being able to surge by an extraordinary 81% over the past 90 trading days.
Let us continue to analyse price action for ADA/USD and highlight some potential areas of resistance above the market on the way toward $0.09.
Cardano Price Analysis
ADA/USD – MEDIUM TERM – DAILY CHART
What Has Been Going On?
After rebounding at the short term .618 Fibonacci Retracement level (drawn in green) priced at $0.060 at the start of May 2019, the cryptocurrency went on to surge much further higher to reach the resistance at the 1.618 Fibonacci Extension level (drawn in dark blue) priced at $0.09398. This area of resistance had also provided strong resistance for the market during April 2019. ADA/USD had even managed to spike into the $0.1 area but failed to hold at this level.
After reaching the resistance at $0.09398, the market rolled over and fell into support around the short term .382 Fibonacci Retracement level (drawn in green) priced at $0.0753, where the rebound had occurred. This area of support is further strengthened by the 200 day moving average level which also hovers at the same price level.
What Is The Current Trend?
The current medium-term trend for Cardano is presently bullish. However, for the trend to continue within the short term we would need to see ADA/USD break above the resistance at $0.09398. If Cardano was to drop and fall beneath the support at $0.06, we could consider the market to have returned to a bearish market.
Where Is The Resistance Above The Market?
If the buyers continue to push the market above the current resistance level at $0.08248, we can expect immediate higher resistance to be located at $0.085. Above this, further resistance can then be expected at the $0.09 target level.
Above $0.09, further resistance is then located at the long term bearish .382 Fibonacci Retracement level (drawn in red) priced at $0.09185. This bearish Fibonacci Retracement level is measured from the July 2018 high to the December 2018 low. If the buyers continue to climb above $0.09185, further resistance above is then expected at the April 2019 high at $0.09398.
If the buyers can clear the $0.09398 level, the next level of resistance is located at $0.01. Beyond $0.09, we can expect further higher resistance to be located at $0.107 and then at the bearish .5 Fibonacci Retracement level (drawn in red) priced at $0.1120. This is followed with more resistance at the short term 1.272 and 1.414 Fibonacci Extension levels (drawn in purple) priced at $0.1177 and $0.1268, respectively.
What If The Sellers Regroup?
Alternatively, if the sellers regroup and begin to push ADA/USD lower, we can expect immediate support beneath the market to be located at $0.08, $0.0754, $0.07218 and $0.07. If the selling continues beneath $0.07, further support below can be found at $0.06838, which contains the 100 day moving average and then at the short term .618 Fibonacci Retracement level (drawn in green) priced at $0.06048.
What Are The Technical Indicators Showing?
The RSI is currently trading at the 50 level which indicates indecision within the market at this moment in time. However, the RSI has poked above the 50 level which indicates that the bullish momentum is now starting to pick up. If the RSI can continue further higher above 50 we can expect ADA/USD to clear the $0.09 level.
The recent bounce for Cardano at the 200 day moving average has now put Cardano on the trajectory to reach the $0.09 level and beyond. The bulls will first need to clear immediate resistance at around $0.085 before being clear to attempt $0.09. However, after clearing $0.09, Cardano can continue much further higher above $0.1 and create fresh 2019 highs.