Cardano’s ADA Technical Analysis – Heading South – 12/07/18

Cardano’s ADA tested major support levels early in the day as a broad based market sell-off saw Wednesday’s gains wiped out in the early hours. The day ahead is damage limitation, as investors prepare for the roll out of new rules and regs.
Bob Mason

Key Highlights

  • Cardano’s ADA gained 2.49% on Wednesday, partially reversing Tuesday’s 8.3% slide, to end the day at $0.13081.
  • A morning pullback saw Cardano’s ADA fall to an intraday low $0.1249 before recovering to $0.13 levels, the day’s low holding above the first major support level at $0.1227.
  • A late morning bounce saw Cardano’s ADA move through to an intraday high $0.13404 that fell short of the first major resistance level at $0.1365, before easing back to move within relatively tight ranges for the rest of the day.

How to Buy Cardano’s ADA

Cardano’s ADA Price Support

Cardano’s ADA gained 2.49% on Wednesday, partially reversing Tuesday’s 8.3% tumble, to end the day at $0.13081.

A relatively choppy first half of the day saw Cardano’s ADA pullback to an intraday low $0.1249 before recovering through the late morning, with Cardano’s ADA managing to avoid the day’s first major support level at $0.1227 on the day and more importantly a spillover from Tuesday’s heavy sell-off that saw Cardano’s ADA give up $0.14 levels held onto since Saturday’s rally.

The mid-morning recovery saw Cardano’s ADA move back through to $0.13 levels to an intraday high $0.13404 before easing back, the day’s high falling short of the first major resistance level at $0.1365 and well short of the 23.6% FIB Retracement Level of $0.1782, leaving the extended bearish trend formed at late April’s swing hi $0.38845 firmly intact mid-week.

At the time of writing, Cardano’s ADA was down 4.1% to $0.12545 with negative sentiment across the broader market weighing heavily in the early hours of the day.

Cardano’s ADA hit a morning high $0.13098 at the start of the day, falling short of the first major resistance level at $0.1349, with a broad based market sell-off seeing Cardano’s ADA slide through the day’s first major support level at $0.1258 to a morning low $.1241 before recovering to $0.125 levels.

For the day ahead, a break back through the first major support level at $0.1258 to $0.1300 would support a run at the day’s first major resistance level at $0.1349, though sentiment across the broader market will need to significantly improve for Cardano’s ADA to break down resistance at $0.1300, investors having very little incentive to jump back in with so much regulatory uncertainty pinning back the majors this week.

Failure to move back through $0.1258 to take a run at $0.13 levels could see Cardano’s ADA take another hit later in the day that would bring the day’s second major support level at $0.1208 into play, while we would expect Cardano’s ADA to avoid testing sub-$0.12 support levels on the day, with Cardano’s ADA likely to end the day at sub-$0.13 levels.

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Looking at the Technical Indicators

Major Support Level: $0.1258

Major Resistance Level: $0.1349

Fib 23.6% Retracement Level: $0.1782

Fib 38% Retracement Level: $0.2184

Fib 62% Retracement Level: $0.2833

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