Cardano's ADA joins the crypto rally but would need to break back through to $0.10 levels to avoid a reversal later in the day.
Cardano’s ADA fell by 2.24% on Tuesday. Reversing a 0.90% gain from Monday, Cardano’s ADA ended the day at $0.09577.
Bearish through the morning, Cardano’s ADA fell from an early intraday high $0.9906 to a mid-day intraday low $0.09041.
Steering clear of the first major resistance level at $0.1006, Cardano’s ADA slid through the first major support level at $0.0942.
Finding support from the broader market through the afternoon, Cardano’s ADA recovered to $0.096 levels late in the day.
The extended bearish trend remained firmly intact in spite of 5 weeks in the green out of the last 7. Cardano’s ADA continued to fall short of the 23.6% FIB Retracement Level of $0.1125, following 7th December’s new swing lo $0.02724.
For the bulls, Cardano’s ADA would need to break out from the 23.6% FIB to $0.16 levels to form a bullish trend.
At the time of writing, Cardano’s ADA was up by 1.21% to $0.09694. A particularly choppy start to the day saw Cardano’s ADA rally to a morning high $0.10887 before hitting reverse.
Cardano’s ADA broke through the first major resistance level at $0.0998 and second major resistance level at $0.1037 before sliding to a low $0.0935.
In spite of the pullback, Cardano’s ADA managed to steer clear of the first major support level early on in the day.
A move back through the first major resistance level at $0.0998 to $0.10 levels would support another run at $0.11 levels later in the day.
Cardano’s ADA would need support from the broader market, however, to break out from the second major resistance level at $0.1037.
In the event of a breakout, the third major resistance level at $0.1124 and 23.6% FIB of $0.1125 would cap the upside on the day.
Failure to move back through the first major resistance level could see Cardano’s ADA hit reverse. A pullback through $0.0950 would bring the first major support level at $0.0911 into play before any recovery.
Barring a broad-based crypto reversal, Cardano’s ADA would likely steer clear of sub-$0.90 levels on the day.
Major Support Level: $0.09980
Major Resistance Level: $0.09110
23.6% FIB Retracement Level: $0.1125
38.2% FIB Retracement Level: $0.1652
62% FIB Retracement Level: $0.2505
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Thanks, Bob
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.