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

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.

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