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

Cardano’s ADA joins the majors in the red in the early hours. A move back through to $0.0525 levels would signal a breakout.
Bob Mason
Cardano Crypto Currency Market

Key Highlights

  • Cardano’s ADA fell by 2.6% on Wednesday. Following on from a 5.24% slide on Tuesday, Cardano’s ADA ended the day at $0.05196.
  • An early afternoon intraday high $0.05475 saw Cardano’s ADA fall short of the first major resistance level at $0.0563.
  • A late afternoon intraday low $0.050556 saw Cardano’s ADA fall through the first major support level at $0.05150.
  • The extended bearish trend remained intact. Cardano’s ADA continued to fall short of the 23.6% FIB Retracement Level of $0.1125.

How to Buy Cardano’s ADA

Cardano’s ADA Price Support

Cardano’s ADA fell by 2.6% on Wednesday. Following on from a 5.24% slide on Tuesday, Cardano’s ADA ended the day at $0.05196.

Choppy through the morning, Cardano’s ADA fell from a mid-morning high $0.05432 to a late morning low $0.05265.

Finding support through the late morning, Cardano’s ADA bounced back to an early afternoon intraday high $0.054746 before hitting reverse.

Falling well short of the first major resistance level at $0.0544, Cardano’s ADA slide to a late afternoon intraday low $0.050556.

The sell-off saw Cardano’s ADA fall through the first major support level at $0.05150 before finding support from the broader market.

A recovery to $0.053 levels was short-lived, with Cardano’s ADA wrapping up the day deep in the red at $0.051 levels.

The extended bearish trend remained firmly intact, reaffirmed by the July fall back to sub-$0.060 levels. 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 38.2% FIB to $0.1650 levels to form a bullish trend.

At the time of writing, Cardano’s ADA was down by 0.79% to $0.051548. A bearish start to the day saw Cardano’s ADA fall from a morning high $0.052336 to a low $0.051228.

Cardano’s ADA steered clear of the major support and resistance levels early on.

For the day ahead

A move through to $0.0525 levels would bring the first major resistance level at $0.0543 into play.

Cardano’s ADA would need the support of the broader market, however, to break out from this morning’s high $0.052336.

Barring a broad-based crypto rally, the first major resistance level at $0.0543 and Wednesday’s high $0.05475 would likely limit any upside.

In the event of a broad-based crypto breakout, the second major resistance level at $0.0566 would likely come into play.

Failure to move through to $0.0525 levels could see Cardano’s ADA struggle through the day. A fall back through the morning low $0.051228 would bring sub-$0.51 levels into play before any recovery.

Barring a crypto meltdown, Cardano’s ADA should steer clear of sub-$0.050 levels on the day. The first major support level at $0.05010 would limit any downside in the event of an extended sell-off.

Looking at the Technical Indicators

Major Support Level: $0.0501

Major Resistance Level: $0.0543

23.6% FIB Retracement Level: $0.1125

38.2% FIB Retracement Level: $0.1652

62% FIB Retracement Level: $0.2505

Please let us know what you think in the comments below

Thanks, Bob

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