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Cardano Technical Analysis – Up on the Day on a Bullish Trend 25/02/2018

By:
Bob Mason
Updated: Feb 25, 2018, 09:42 UTC

Key Highlights Cardano’s ADA slipped to a weekend low $0.289 on Saturday, reversing a 3% gain through the early part of the day that saw Cardano hit a day

cardano

Key Highlights

  • Cardano’s ADA slipped to a weekend low $0.289 on Saturday, reversing a 3% gain through the early part of the day that saw Cardano hit a day high $0.3296.
  • It’s been quite a sell-off for Cardano when looking back at the start of the year’s high $1.384.
  • For the week, Monday through to Saturday’s close, Cardano’s ADA was down 16.7% to $0.2998

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Cardano Price Resistance

Cardano’s ADA tested its first major resistance level of $0.338 on Saturday, hitting a day high $0.3296, which ultimately led to Cardano going into reverse through the middle part of the day and a fall through its first major support level of $0.3008 to hit a day low $0.289.

The slide left Cardano down 6.3% for the day and 16.7% down from Monday’s open through to the end of the day on Saturday.

Following a dire week and a Saturday reversal, Cardano’s fortunes have improved through the early part of this morning, with Cardano up 1.87% to $0.3056 at the time of writing.

While the key move through the morning has been to recover $0.30 levels early on, the bullish trend developed through the morning is of greater interest and will likely draw in new investors ahead of the start of the week. Investors will likely be attracted by Cardano’s current value, with current levels well off its January highs.

The bullish trend is supported by Cardano’s move through its 23.8% FIB Retracement Level of $0.3003, with a Cardano hold at above $0.3003 supporting a move through to Cardano’s 38.2% FIB Retracement Level of $0.3072.

With Cardano’s first major resistance level sitting at $0.3233, breaking through $0.3072 would support a move through to $0.31 levels and a run at $0.32 levels, though much will depend upon crypto market sentiment as the day progresses.

In recent weeks, we have seen the cryptos go into reverse on Sundays and, with plenty of bearish forecasts for the week ahead hitting the news wires, investors may be quick to lock in profits well before the end of the day.

With Cardano’s first major support level sitting at $0.2827, there’s a long way to fall and we will expect support at the $0.30 psychological level, though again this may soften as the day progresses.

How Cardano performs by the end of the day will ultimately be dependent upon how the broader market performs. For now, Cardano is one of the front runners amongst the majors.

Cardano 1H Chart
Cardano 1H Chart

Looking at the Technical Indicators

  • Major Support Level: $0.2827
  • Major Resistance Level: $0.3233
  • Fib 23.6% Retracement Level: $0.3003
  • Fib 38% Retracement Level: $0.3072
  • Fib 62% Retracement Level: $0.3185

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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