After remaining indecisive for weeks, Cardano ADA found support again this week and began to show signs of strength following a 13% gain in four days. It has temporarily suspended bearish and now foots a fresh increase.

Starting the second quarter of the year on a negative note, ADA shed a huge loss and tested the $0.4 level, which was sharply rejected with a bounce. It encountered resistance at $0.53 and rolled back, ending last month in a dip.

It managed to recover earlier this month but it quickly lost momentum and later located a solid support above $0.42 this Tuesday. It bounced back the following day and surged steadily to a high of $0.49 yesterday.

Currently, the market looks indecisive due to low buying pressure. If the bulls further show strong commitment, we can expect more positive actions in the next few days. If not, the market may pull back a bit before resuming buys. 

The $0.522 level is an immediate resistance to watch for a breakup. If the price fails to scale through this resistance, ADA may continue to move sideways until it finds a break. Looking at the daily price actions, it is still considered neutral-bearish despite the recent gains.

ADA’s Key Levels to Watch

Source: Tradingview

A successful increase above the mentioned immediate resistance could bring a slight shift to the $0.56 resistance level that broke down as support in April. We can expect a slight pullback from there. If it fails, the $0.625 level would be the next resistance to keep in mind.

At the current trading level, the closest level for pullback is located at $0.45. Below it lies the weekly $0.426 support. If the price dips, the lower support level to watch is $0.4 and potentially $0.35.

Key Resistance Levels: $0.522, $0.56, $0.625

Key Support Levels: $0.426, $0.40, $0.35

Spot Price: $0.482
Trend: Bullish
Volatility: Moderate

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.

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Image Source: iuriimotov/123RF // Image Effects by Colorcinch

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Filed under: Bitcoin - @ May 19, 2024 3:32 am