Cardano’s Technical Analysis –Looking to break out – 23/05/18

Key Highlights

• Cardano’s ADA tumbled 10.76% on Tuesday, following on from Monday’s 3.73% slide, to end the day at $0.22073.
• The day’s $0.24734 high came up short of the first major resistance level at $0.2563 and 23.6% FIB Retracement Level of $0.2674.
• A late in the day sell-off saw Cardano’s ADA slide through the day’s first major support level at $0.2394 and second major support level at $0.2328 to an intraday low and new swing lo $0.219.
• The day’s low came within reach of the third major support level at $0.2159 before recovering to $0.22 levels.

How to Buy Cardano’s ADA

Cardano’s ADA Price Support

Cardano’s ADA stumbled through the start of the week, tumbling 10.76% on Tuesday, following a 3.73% fall on Monday, to end the day at $0.22073.

It was red through most of the day, an intraday high $0.23734 coming at the start of the day, with Cardano’s ADA seeing Monday afternoon’s reversal spill over to Tuesday morning.

While a bearish trend persisted through the day, a late sell-off did most of the damage, with Cardano’s ADA sliding from $0.2372 to an intraday low and new swing lo $0.219 in the final hours of the day, reaffirming the bearish trend formed at 29^th April’s swing hi $0.388.

The late sell-off came with no materially negative news hitting the wires, concerns over a material shift in the regulatory landscape continuing to weigh on the broader market, Cardano’s ADA seeing similar direction to the rest of the major cryptos through the day.

At the time of writing, Cardano’s ADA was down 1.81% to $0.217, with Tuesday’s sell-off continuing through to the early hours of this morning, Cardano’s ADA falling to an intraday low and new swing lo $0.21255.

In spite of the new swing low, Cardano’s ADA managed to hold above the day’s first major support level at $0.2107 in the early hours, though there may be more pain to come before any meaningful recovery, with negative sentiment across the broader market pinning back Cardano’s ADA and the majority of the majors this month.

For the day ahead, a move through the morning’s $0.2227 high to $0.229 would support a run at the day’s first major resistance level at $0.2390, where we would expect a buildup of selling pressure, investors keen to lock in profits in fear of more negative news hitting the wires, with any pullback likely to leave Cardano’s ADA in the red for the day.

Failing to move through to $0.23 levels would likely see the day’s first major support level at $0.2107 come into play, with the prospects of sub-$0.20 levels becoming all the more real should market sentiment fail to improve through the second half of the day, sub-$0.20 having been untouched since 14^th April.

Looking at the Technical Indicators

Major Support Level: $0.2107

Major Resistance Level: $0.239

Fib 23.6% Retracement Level: $0.2589

Fib 38% Retracement Level: $0.2836

Fib 62% Retracement Level: $0.3234