Cardano’s ADA Technical Analysis – Eyes Bearish Trend Reversal – 31/05/18

Key Highlights

• Cardano’s ADA gained 2.65% on Wednesday, following on from Tuesday’s 17.12% rally, to end the day at $0.20787.
• An early morning intraday high $0.2168 fell short of the day’s first major resistance level of $0.2214 and 23.6% FIB Retracement Level of $0.2222 before a cryptomarket sell-off kicked in.
• An early afternoon intraday low $0.1962 avoided the day’s first major support level at $0.1773 to recover to $0.20 levels by the day’s end.

How to Buy Cardano’s ADA

Cardano’s ADA Price Resistance

Cardano’s ADA gained 2.65% on Wednesday, following Tuesday’s 17.12% rally, outperforming the front runners to end the day at $0.20787.

Bucking the trend in the early part of the day, Cardano’s ADA rallied through to an intraday high $0.2168 in the early hours of the morning, before easing back to $0.20 levels, with the morning’s intraday high falling short of the day’s first major resistance level at $0.2214 and the 23.6% FIB Retracement Level of $0.2222.

An early afternoon cryptomarket sell-off saw Cardano’s ADA fall through to an intraday low $0.1962, before recovering through the late afternoon, with the afternoon intraday low managing to avoid the day’s first major support level at $0.1773.

At the time of writing, Cardano’s ADA was up 1.81% to $0.21477, recovering from a $0.2034 low in the early morning that held above the day’s first major support level at $0.1971.

Positive sentiment across the broader market saw Cardano’s ADA move through to an intraday high $0.21716, before easing back, Cardano’s ADA testing the day’s first major resistance level at $0.2177 early in the day.

For the day ahead, a break through the day’s first major resistance level at $0.2177 to $0.2185 levels would support a run at the 23.6% FIB Retracement level of 0.2222, which would signal the start of a bullish trend, following the extended bearish trend that was formed back at late April’s swing hi $0.388.

Failing to move through the day’s first major resistance level at $0.2177 could see Cardano’s ADA reverse the day’s gains, with the day’s first major support level at $0.1971 very much in play through the afternoon.

We will expect sentiment across the broader cryptomarket to provide direction for Cardano’s ADA through the day and, while there has been occasion to buck trends, investors will likely be quicker to the Cardano’s ADA sell button following Wednesday’s buck trending moves.

For the crypto bulls, the good news is the apparent shift in sentiment, with key resistance levels being tested, though investors will continue to need to take caution and protect the downside, with the cryptomarket volatility unlikely to abate anytime soon, as key jurisdictions continue to investigate crypto trading practices, whilst also preparing to roll out new regs for the market.

 

Looking at the Technical Indicators

Major Support Level: $0.1971

Major Resistance Level: $0.2177

Fib 23.6% Retracement Level: $0.2222

Fib 38% Retracement Level: $0.2539

Fib 62% Retracement Level: $0.3051