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Cardano’s ADA Technical Analysis – Support Levels in Play – 08/03/19

By:
Bob Mason
Published: Mar 8, 2019, 03:57 UTC

Cardano's ADA takes an early slide. A move back through to $0.438 levels would signal an afternoon rebound.

Cardano Crypto Currency Market

Key Highlights

  • Cardano’s ADA gained 0.51% on Thursday. Partially reversing a 1.08% fall from Wednesday, Cardano’s ADA ended the day at $0.04373.
  • A late morning intraday low $0.04303 saw Cardano’s ADA steer clear of the first major support level at $0.04260.
  • A late in the day intraday high $0.044524 saw Cardano’s ADA break through the first major resistance level at $0.0445.
  • The extended bearish trend remained intact. Cardano’s ADA continued to fall well short of the 23.6% FIB Retracement Level of $0.1125.

How to Buy Cardano’s ADA

Cardano’s ADA Price Resistance

Cardano’s ADA rose by 0.51% on Thursday. Partially reversing a 1.08% fall from Wednesday, Cardano’s ADA ended the day at $0.043727.

A relatively bullish start to the day saw Cardano’s ADA rise to an early morning high $0.04445 before hitting reverse. Coming up against the first major resistance level at $0.04450, Cardano’s ADA slid to a late morning intraday low $0.04303.

Steering clear of the first major support level at $0.0426, Cardano’s ADA bounced back to an afternoon high $0.044524 before easing back. The afternoon rally saw Cardano’s ADA break through the first major resistance level at $0.04450.

For the current week, Cardano’s ADA was up by 1.86%, Monday through Thursday, in what has been a choppy week. Cardano’s ADA tumbled to a current week low $0.03993 on Monday before bouncing back to a current week high $0.04465 on Wednesday. The gains through the week bring the prospects of a 3rd consecutive week in the green.

In spite of the current week’s gains, the extended bearish trend, formed at early May’s swing hi $0.38845, remained firmly intact. Cardano’s ADA continued to fall well short of the 23.6% FIB Retracement Level of $0.1125, following 7th December’s new swing lo $0.02724.

At the time of writing, Cardano’s ADA was down by 0.65% to $0.04344. A bearish start to the day saw Cardano’s ADA fall from a morning high $0.04389 to a low $0.04324 before steadying.

The day’s major support and resistance levels were left untested early on.

ADA/USD 08/03/19 Daily Chart

For the day ahead

A move back through to $0.0438 levels would support a rebound later on in the day. Support from the broader market would be needed for Cardano’s ADA to take a run at the first major resistance level at $0.0445.

In the event of a rebound, we would expect Thursday’s high $0.04452 and the second major resistance level at $0.0453 to limit any upside on the day.

Failure to move back through to $0.0438 levels could see Cardano’s ADA fall deeper into the red on the day. A fall through the morning low $0.04324 would see Cardano’s ADA test the day’s first major support level at $0.0430. A broad-based crypto sell-off would bring the second major support level at $0.0423 into play before any recovery. We would expect Cardano’s ADA to steer clear of sub-$0.0420 levels on the day.

Looking at the Technical Indicators

Major Support Level: $0.0430

Major Resistance Level: $0.0445

23.6% FIB Retracement Level: $0.1125

38.2% FIB Retracement Level: $0.1652

62% FIB Retracement Level: $0.2505

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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