Cardano (ADA) Technical Analysis: Slides Further Away From $0.07, Downtrend Likely to Continue
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ADA is standing out as one of the better performing assets among the the top 10 cryptocurrencies today, as the market turns red in response to the breaking news that Binance has been hacked.
At the time of writing, ADA is reporting a -2.66% decline against the US dollar while other leading projects are showing 4-7% losses. 24hr trading volume has thinned down by $12 Million compared to yesterday’s peak volume of $61 Million, but trading activity appears to be slowly increasing again after this morning’s developments.
Over the last few months, the Cardano project has made considerable progress with its brand awareness and social media engagement, after the Cardano Foundation underwent a corporate restructuring on November 13, 2018.
According to data from Similarweb, the Cardano.org website has seen a 2X increase in traffic since February, as well as a 40% rise in subreddit members since January. David Esser, Cardano’s Senior Product Manager, also stated in the latest IOHK blog that the project will continue to improve its transparency with more AMA’s, a clearly defined 2020 roadmap and live progress demos.
Cardano (ADA) Price Analysis
On the 1D ADA/USDT chart we can see that the asset is currently stuck in a downtrend after correcting from a height of $0.10 on April 2.
Throughout early May, the asset found temporary support along the 0.5 fibonacci level at $0.068 until increased bearish momentum broke through it on May 5.
Looking at a number of 1D indicators we can see that bearish traders are very much still in control of the asset, with both the RSI and MACD showing an increase in selling momentum.
Candles have also fallen through the 1D supporting kumo cloud on the Ichimoku indicator, along with Parabolic SAR dots appearing above the price action. Both of these signals are very bearish and suggest that a retracement back above the $0.07 level is unlikely in the short-term.
From this, we can assume that ADA will continue to downtrend towards the first potential recovery zone (green shaded area) which sits between the $0.063 and $0.058 levels. Both levels have been key support/resistance levels in the past for this asset and could provide bullish traders with an early opportunity to push back against the mounting selling pressure, if market sentiment improves.
Should buyers fail to relaunch from this area however, and the price action continues bearish, then the key uptrending support (black arrow) will be the next area to look for to help slow the asset’s decline.
This particular support level has managed to prop up the price action on 3 previous occasions (green arrows), and at each time the asset was able to make an upside recovery towards a new high.
Cardano (ADA) Price Targets
All ROIs are calculated from the asset’s current value at $0.065 (AToW).
PT1: $0.058 (-10.77%)
PT2: $0.052 (-20.00%)