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

By:
Bob Mason
Published: Aug 8, 2019, 01:36 UTC

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.

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.

ADA/USD 08/08/19 Daily Chart

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

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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