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19/06/24
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Technical Outlook on the Performance of Cardano (ADA)
The chart of ADA/USD shows that the bears were able to initiate a move to the downside over the past few days. This came after the bulls could not push ADA clearly past the barrier level at $0.45. There was a fall beneath the support level at $0.40 and there was a visit to the $0.36 area.
ADA was able to reach levels as low as $0.36 prior to initiating current correction of losses. The bulls pushed ADA somewhat above the $0.375 area and there was a push past the 50% Fibonacci correction level of the fall from $0.4204 swing high to $0.36 low.
A look at its 1-hour chart shows the formation of a connecting bullish trend line with a support level at $0.376. However, ADA is encountering numerous barrier levels on its way upward. The same chart shows that its current performance is beneath $0.40, as well as beneath the 100 hourly SMA.
The next barrier level on the way upward is close to the $0.3980 area or the 61.8% Fibonacci correction level of the fall from $0.4204 swing high to $0.36 low. The initial barrier level is close to $0.4, while the immediate major barrier level may be encountered at $0.41.
If ADA closes past the barrier level at $0.41, the bulls may be able to initiate a more significant upside move. In such a situation, ADA may be pushed toward the $0.425 area. If there are any additional gains, they may be able to pave the way for a move to $0.45.
On the other hand, the failure of the bulls to push ADA past the barrier level at $0.40 may empower the bears to initiate a new move to the downside. The first support level on the way downward is close to $0.385.
The immediate key support level is close to $0.38, as well as near the trend line. If ADA breaks beneath $0.38, it may pave the way for a visit to $0.365. The immediate key support level exists close to $0.36.
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