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03/07/24
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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 modest upside move from the support area at $0.38 over the previous few days. They pushed ADA past two barrier levels, including $0.40 and $0.405.
There was a clear move past the barrier level at $0.42, followed by a visit to $0.4225. ADA reached levels as high as $0.4225 prior to initiating the current consolidation of gains. The bears pulled ADA beneath two support levels, including $0.422 and $0.42. There was a visit to the 23.6% Fibonacci correction level of the upswing from $0.3782 swing low to $0.4225 high.
A look at its 1-hour chart shows that its current performance is at levels beneath $0.412, as well as below the 100 hourly SMA. The same chart shows the formation of two major bullish trend lines with support levels at $0.412 and $0.408.
The ability of the bulls to initiate a new upside move may bring about a move to the barrier level close to the $0.42 area. The initial barrier level is close to $0.4225, while the immediate major barrier level may be encountered at $0.445.
If ADA closes above the barrier level at $0.445, the bulls may be able to initiate a more significant upside move. In such a situation, it may be easier for ADA to move towards the $0.485 area. If there are any additional gains, the bulls may be able to pave the way for a move towards $0.50.
On the other hand, the failure of the bulls to push ADA clearly past the barrier level at $0.4225 may empower the bears to sustain its performance towards the downside. The next support level on the way downward is close to $0.412.
The immediate key support level is close to $0.408, as well as near the second trend line. If ADA breaks beneath $0.408, the bears may be able to pave the way for a visit to $0.40. The immediate key support level is close to $0.388.
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