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22/05/24
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Technical Outlook on the Performance of Cardano (ADA)
The chart of ADA/USD shows that the bulls were able to initiate a move to recover from the area around $0.462 over the past few days. However, ADA could not pull off the kind of performance recorded by BTC and ETH. There was a break past two barrier levels, including $0.475 and $0.48, for a move into a short-term bullish area.
The bulls pushed ADA past $0.50 but it was not possible to keep its performance toward the upside. ADA hit levels as high as $0.51 prior to the bears initiating a new move to the downside. There was a dip beneath the support level at $0.498. Likewise, ADA moved to levels beneath the 23.6% Fibonacci correction level of the upswing from $0.4614 swing low to $0.51 low.
A look at its 1-hour chart shows that its current performance is at levels above $0.48, as well as above the 100 SMA. The same chart shows the formation of a major bullish trend line with a support level close to $0.48. Likewise, the trend line is near the 61.8% Fibonacci correction level of the upswing from $0.4614 swing low to $0.51 low.
The next barrier level on the way upward is close to the $0.498 area. The initial barrier level is close to $0.51, and the immediate major barrier level may be encountered at $0.525. If ADA closes past the barrier level at $0.525, the bulls may be able to initiate a more significant upside move. In such a situation, ADA may be pushed toward the $0.545 area. If there are any additional gains, the bulls may be able to pave the way for a move to $0.565.
On the other hand, the failure of the bulls to push ADA clearly past the barrier level at $0.498 may empower the bears to initiate a new move to the downside. The next support level on the way downward is close to $0.45.
The immediate key support level is close to $0.48. If ADA breaks beneath $0.48, the bears may be able to pave the way for a visit to $0.462. The immediate key support level is close to $0.45.
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