Cardano Technical Analysis – Cardano Looks to Test Resistance 19/03/2018

Key Highlights

• Cardano’s ADA gained 1.39% on Sunday, partially reversing Saturday’s 13.14% slide.
• The bearish trend has remained intact since Wednesday’s swing hi $0.2295.
• Sunday’s intraday high $0.165 fell short of the day’s first major resistance level, while support levels were tested during an afternoon meltdown.

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Cardano’s Price Resistance

Cardano has been in the hands of the bears since the middle of last week, with things going from bad to worse on Saturday, as Cardano slid 13.14% to end the day at $0.153. The bearish trend continued through to Sunday evening, with Cardano tumbling 19.4% from Sunday’s opening $0.153 to an intraday low $0.12327.

Support levels provided investors with little comfort, with Cardano sliding through the day’s 1^st and 2^nd support levels with relative ease before investor appetite returned.

The slide through the middle part of the week and the weekend was attributed to market sentiment towards the banning of crypto ads by Google and then news of a planned ban by Twitter in the coming weeks.

A late Sunday rebound, driven by news hitting the wires of the G20 planning on taking a less aggressive stance on cryptocurrencies and initial coin offerings, saw Cardano rebound to an intraday high $0.165, before easing back to $0.1551 by the day’s end, a 1.39% gain for the day. The gain was of little consolation for longer-term investors, with Cardano sliding 29.1% from Monday’s open through to the end of the weekend.

Sentiment has improved through the early part of Monday, with Cardano up 7.48% to $0.165 at the time of writing. Resistance levels have remained untested this morning, with a morning high $0.169 falling short of the day’s first major resistance level of $0.17232, while Cardano hovers at the day’s 38.2% FIB Retracement Level of $0.1638.

News hitting the wires of Cardano’s software upgrade, the first since last September, has provided the necessary uptick and drive Cardano ahead of the rest of the majors, with Bitcoin’s 1.54% gain through the morning a distant 2^nd.

For the day ahead, a move back through to the morning’s $0.169 high would support a run at the day’s first major resistance level of $0.17232 as Cardano looks to break the bearish trend. While news of the software upgrade has been a positive, failure to move through to $0.17 levels will likely leave Cardano in the hands of the news wires.

While there are hopes that the G20 will take a more pragmatic approach to the cryptos, last week’s session in Congress suggests that it may not be as positive for the cryptos as some suggest. In isolation, Cardano will likely maintain gains, though any shift in sentiment across the broader market could see investors lock in profits later in the day.

A pullback through to this morning’s $0.153 low may well see Cardano fall below the day’s 23.6% FIB Retracement Level of $0.1483, though testing the day’s first major support level of $0.13059 looks unlikely at the time of writing.

Looking at the Technical Indicators

Major Support Level: $0.13059

Major Resistance Level: $0.17232

Fib 23.6% Retracement Level: $0.1483

Fib 38% Retracement Level: $0.1638

Fib 62% Retracement Level: $0.1889