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12/07/24
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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 $0.335 over the previous few sessions. They pushed ADA above two barrier levels, including $0.35 and $0.365.
There was a clear move past the barrier level at $0.388, followed by a visit to $0.405. ADA was able to reach levels as high as $0.4047 prior to initiating the current consolidation of gains.
The bears swung into action, pulling ADA beneath two support levels, including $0.40 and $0.398. There was a visit to the 23.6% Fibonacci correction level of the upswing from $0.3577 swing low to $0.4047 high.
A look at its 1-hour chart shows its current performance is at levels above $0.38 as well as above the 100 SMA. The same chart shows the formation of a major bullish trend line with a support level at $0.3935.
The ability of the bulls to initiate a new move to the upside may lead to the barrier level close to the $0.40 area. The initial barrier level is close to $0.405, while the immediate key barrier level may be encountered at $0.425.
If ADA closes past the barrier level at $0.425, the bulls may be able to initiate a significant upside move. In this situation, ADA may be pushed higher towards the $0.45 area. If there are any additional gains, the bulls may be able to pave the way for a move towards $0.465.
On the other hand, the failure of the bulls to push ADA clearly past the barrier level at $0.40 may empower the bears to initiate a new move to the downside. The next support level on the way downward is close to $0.396, as well as near the trend line.
The immediate key support level is close to $0.381, as well as near the 50% Fibonacci correction level of the upswing from $0.3577 swing low to $0.4047 high. If ADA breaks beneath $0.381, the bears may be able to pave the way for a visit to $0.375. The immediate key support level is close to $0.35.
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