Cardano Price Analysis: ADA Testing Lower Boundary of Multi-Month Trading Range

  • Cardano re-approaches lower boundary of 3-month long trading range.
  • A break below $0.060 could see ADA/USD slip toward $0.050 but RSI is extremely oversold which indicates it is unlikely to happen.
  • Support moving forward: $0.06188, $0.6069, $0.060, $0.055, $0.050, $0.04705.
  • Resistance moving forward: $0.06437, $0.06772, $0.07334, $0.07729, $0.08124, $0.090, $0.094, $0.10277, $0.01074.

Cardano has seen a small 1% price increase after the wave of selling which has occurred over the past few trading sessions. The cryptocurrency is now trading at a price around $0.06188, at the time of writing, after suffering a steep 17% decline over the past 7 trading days.

The Cardano project is now ranked in 9th position in terms of overall market cap, and holds a total market cap value of $1.60 billion. ADA has undergone a precipitous 37% price plunge over the past 90 trading days. The 13-month old crypto is now trading at a value that is 94% lower than its all-time high price.

Let us continue to analyze price action for ADA/USD over the long term and get a perspective on the market.

Cardano Price Analysis

ADA/USD – LONG TERM – DAILY CHART

From the long-term outlook above, we can see that ADA/USD had experienced a steep decline throughout the year until finding strong support at a downside 1.414 Fibonacci Extension level priced at $0.061889. As ADA/USD approached this area, the selling ceased and price action halted its decline.

The market has been trapped within a trading range since meeting this support, with $0.06188 as the lower boundary of the range and $0.09459 as the upper boundary of the range.

We can see that the recent market wipeout has driven the ADA/USD market back down to the lower boundary of the aforementioned trading range. Price action is presently testing the support as we wait for more confirmation on whether it will hold.

Let us continue to analyze price action a little closer over the short term and highlight any areas of potential support and resistance moving forward.

ADA/USD – SHORT TERM – DAILY CHART

Analyzing price action from a closer perspective, we can see that price action is currently trading on the previously mentioned support at the $0.06188 handle.

If the bulls can defend this area over the next few trading sessions and eventually push price action higher, they will meet immediate resistance above at the previous short-term .886 and .786 Fibonacci Retracement levels (drawn in green), priced at $0.06437 and $0.06772 respectively.

If the buyers continue to drive the market further higher, more resistance can then be located at the .618 and .382 Fibonacci Retracement levels (drawn in green), priced at $0.07334 and $0.081242 respectively.

If the bullish momentum can proceed to climb higher, we can expect further resistance above to be located at the September 2018 price high at $0.094. This level of resistance is strengthened by the 100-day moving average which is currently hovering in the same price region.

If the buyers can persist and push price action above the 100-day moving average, we can then expect further resistance higher to be located at the 1.272 and 1.414 FIbonacci Extension levels (drawn in purple), priced at $0.1027 and $0.1074 respectively.

Alternatively, in our bearish scenario, if the sellers continue to drive price action below the strong support at the $0.06188 handle, we can expect the market to continue to drop to further psychological support beneath which is located at the $0.060 handle.

If the bearish pressure continues to penetrate below the $0.060 handle, we can expect further support lower at the $0.055 handle, followed by the downside 1.272 Fibonacci Extension level (drawn in red) priced at $0.04705.

The RSI has dropped to extremely oversold conditions, indicating that the sellers may have run out of bearish steam. This gives us reason to believe that the market will not break below the $0.06 handle. If the RSI begins to rise toward the 50 handle again, we could expect price action to slowly recover.

Let us quickly continue to analyze price action for ADA relative to BTC over the long term.

ADA/BTC – LONG TERM – DAILY CHART

Taking a look at ADA/BTC over the long term, we can see that ADA had been in a strong downtrend for the majority of the year until support was located at the downside 1.414 Fibonacci Extension level, priced at 1014 SATS in September 2018.

As ADA/BTC had reached this area of support, the selling pressure faded. This allowed the market to continue to trade within a sideways manner, trapped in a range between the downside 1.272 and 1.414 Fibonacci Extension levels priced at 1,336 SATS and 1,014 SATS respectively.

Let us continue to analyze price action for ADA/BTC a little closer and highlight some potential areas of support and resistance moving forward.

ADA/BTC – SHORT TERM – DAILY CHART

Analyzing the market from the short-term perspective above, we can see that after reaching the support at 1,014 SATS, the market went on to rally to a high of 1,387 SATS on September 23, 2018. This created a price spike of 39%.

Price action has since been decreasing after placing this high. The market is now trading just below support at the .618 FIbonacci Retracement level priced at 1,130 SATS as ADA/BTC currently rests at 1,099 SATS.

If the bulls can regather their effort and push price action above 1m130 SATSm they will meet immediate resistance above at the .5 and .382 Fibonacci Retracement levels, priced at 1,180 SATS and 1,231 SATS respectively.

If the buyers can break above the upper boundary of the trading range at 1,336 SATS, we can then expect further higher resistance above to be located at the short-term 1.272 and 1.414 FIbonacci Extension levels (drawn in purple), priced at 1,503 SATS and 1,562 SATS.

On the other hand, in our bearish scenario, if the selling pressure continues to drive price action lower, we can expect immediate support below to be located at the .786 Fibonacci Retracement level priced at 1,058 SATS, followed by the lower boundary of the trading range priced at 1,014 SATS.

If the sellers continue to push price action below 1,000 SATS, further support below can then be located at the 900 SATS handle, followed by the downside 1.272 Fibonacci Extension level priced at 826 SATS.

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