Cardano, after hitting ATH of $1.5 plummeted 30% or more has entered a consolidation phase around $1. ADA experienced resistance by selling pressure and concentration of Bitcoin’s rise. Cardano outperformed Bitcoin once in the first week of March. However, it lost its momentum and slipped into a descending trend until March 17, 2021.
On 17th March, ADA Price broke out of the descending triangle. It was held down by strong resistance at $1.2, and support at $1.0. It seems like bulls finally won the battle, breaking the crucial resistance levels and reaching $1.29 levels. While penning this article down, ADA was consolidating and was looking healthy at $1.235 levels with 20% returns.
The chart clearly indicates price action taking over. What is more interesting is that the rise in the levels of ADA is observed at a time when Bitcoin is consolidating at $54k after hitting ATH levels of $61k. The volumes of trades of ADA exceeded $8.75 Billion worth of transactions in the last 24 hours.
ADA Boasts a market capitalization of $40,011,956,845 and is ranked third in all the cryptocurrencies. Fibo Retracement levels show the chart resorting and holding between 0.5 and 0.61 levels. A strong buying sentiment was also observed as represented by the MACD indicator.
RSI(14) levels were being held at around 50, showing significant room for volume dominated momentum. Moving averages show a good intraday trade perspective, but when looking at day charts, the indicators show neutrality.
There is a strong possibility that the value of ADA will hold above $1.2 forming a small consolidation triangle and may blast to $1.5. It can also cross the $1.5 levels, and can hit $1.8 if the uptrend continues.
On the contrary, if there is an acute reversal, the value has multiple support levels at $1.2, $1.0 and $0.9 respectively. But the previous ATH will act as a resistance level, hence it is an important level to watch.
- Support levels: $1.2, $1.0 and $0.9.
- Resistances: $1.3 and $1.5.
- RSI(14): 50-55