Cardano (ADA) Technical Analysis: Bulls Fails to Surpass Psychological $0.10 Level
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Cardano buyers have failed to test a major milestone today, after running into strong selling pressure at the psychological $0.10 level. These particular levels often create problems during an uptrend as traders have a tendency to sell assets when they reach whole numbers.
ADA was able to hit a new 6-week high at $0.101 during the early hours of this morning, before bearish traders took over and sent the price tumbling by -17.58%. Since then, the asset has struggled to break above yesterday’s close at $0.094.
Right now the #10 cryptocurrency is hanging on in the green with a 4.18% gain against the US dollar. Despite the recent bearish decline, 24 hour Trading volume is showing a marked increase of $81 Million.
Cardano (ADA) Price Analysis
On the 1D ADA/USD chart, we can see that the asset was finally able to break clear of a long-standing resistance (white line) on May 11, after failing to breach the level several times throughout Q2.
Since then, ADA bulls have made a strong return to the market and helped to lift the asset over 68% in 5 days.
On the 1D RSI we can see that the asset has started to correct back into the channel after almost breaking into the overbought region above. The 12-MA on the MACD indicator however, is still yet to show any signs of diverging back down towards the 26-MA. Buying volume on the histogram also does not appear to have been affected by the intraday correction.
The 1D Aroon and Parabolic SAR indicators are also favouring a bullish continuation at the moment.
If bullish traders are able to take back control of the asset and close above the $0.10 level, then the next likely resistance for ADA will be at the 400 SMA (yellow line). This particular level is also overlapping with another strong resistance at the $0.105 level. Together, these two points are likely to create additional friction in the uptrend as ADA tries to break clear of the psychological level.
If bears continue to drive the price action downward, then the most likely supports can be found at the $0.083 and the $0.074 levels.
Cardano (ADA) Price Targets
The short to mid-term bullish target for ADA will be between the $0.105 level and the 0.236 fibonacci level at $0.118 (green shaded zone), which have both been particularly strong S/R levels for the asset in the past.
All ROIs are calculated from the asset’s current value at $0.877
PT1: $0.105 (19.73%)
PT2: $0.118 (34.55%)