The good news is that the ADA token has formed strong support at $0.1000. This also happens to be above the 100-day simple moving average.
There is a major bearish trend line with resistance at $0.1100 and the technical indicators are struggling to go back to the bullish zone. This morning, the Cardano ADA token fell lower against the USD but formed support at the $0.1009 level before it gained momentum. The ADA token finally moved above the 23.6% Fib retracement level of the last drop from $0.1105 to $0.1009. There was an initial resistance near the $0.1060 and $0.1065 levels.
The 50% Fib retracement level of the last decline from $0.1105 high to $0.1009 is acting as a hurdle. The token must move above the $0.185 resistance and the resistance at the $0.1100 level. The MACD is moving towards the bullish level and the relative strength index is also heading toward this direction. However, it is still below the 50 levels.
Now, there are key supports at $0.1030, $0.1005, and $0.1000 while there are key resistance levels at $0.1065, $0.1085, and $0.1100. In the next few days of trading, we would know whether the Cardano ADA token will move above the resistance at $0.110 level. Yesterday, Bitcoin BTC moved above the $12k level but it didn’t carry Cardano ADA or many other tokens along.
Ufuoma Ogono is a cryptocurrency writer with over 3 years experience in the cryptocurrency industry. She dedicates her time to sharing valuable information to members of the cryptocurrency community.
- Cardano ADA Must Clear the Resistance at $0.110 Before the Token Can Move Higher Near-term
- Cardano ADA Must Hold the Support at $0.1030 to Prevent Lower Lows
Cardano ADA has been holding the line above the $0.100 level for more than a week but it has been unable to move above the $0.110 level. If the ADA token is to make any significant progress near-term, it must rise above this resistance and make its way to higher highs. Before ADA faces the resistance at $0.1100, it has to cross the resistance at $0.1085 which it has been unable to cross for days.
Cardano ADA Needs Bullish Momentum
At the time of writing, the price of the Cardano ADA token was $0.104189. It is down by 1.21% against the USD and down by 4.79% against Bitcoin BTC. The trading volume over 24 hours was $837,950,615 and the market capitalization was $3,241,570,542. The Cardano ADA token is currently facing strong resistance at the $0.1065 level.
If the token were to pass this level in the next few reading sessions, it will need to cross the next resistance at the $0.1085 level. None of this will matter if the Cardano ADA token doesn’t cross the most important resistance which is at $0.110.