Cardano Price: Will support Level at $0.08 Hold?

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Azeez Mustapha

Updated: 13 October 2022

ADA Price Analysis – September 08

The price is approaching the $0.08 price level; if the just mentioned level is defended by the bulls, the price may return to face the resistance levels at $0.01, $0.11, and $0.13. In case the bulls could not defend the demand level at $0.08, a decrease in ADA price will continue towards the support levels at $0.08, $0.07, and $0.06.

ADA/USD Market

Key Levels:

Resistance levels: $0.10, $0.11, $0.13

Support levels: $0.08, $0.07, $0.06

ADA/USD Long-term Trend: Bearish

ADA market experienced a bearish breakout at $0.11 former demand level two weeks ago. Cardano price decreased to test the demand level at $0.10 on August 27. The price was pulled back to test the broken level of $0.11. The dynamic resistance levels prevented a further increase in price. The sellers return to the ADA market with an increase in pressure and the coin continues its bearish movement towards $0.08 level after it penetrates $0.10.

Cardano price has passed through the two dynamic support levels to the downside and it is trading below the 9 periods EMA and 21 periods EMA. The price is approaching the $0.08 price level; if the just mentioned level is defended by the bulls, the price may return to face the resistance levels at $0.01, $0.11, and $0.13. In case the bulls could not defend the demand level at $0.08, a decrease in ADA price will continue towards the support levels at $0.08, $0.07, and $0.06.

ADA/USD Medium-term Trend: Bearish

The bulls lost control over Cardano’s price on September 01 after brief price consolidation. The bears increase their pressure and this is shown in the 4-hour chart with the formation of more bearish candles. The price breaks down the demand levels of $0.11 and $0.10, moving towards the demand level at $0.08.

On the 4-hour chart, ADA price action is forming a double bottom chart pattern which may result in the price increase. ADA is trying to cross the two EMAs upside; it is currently trading between 9 periods EMAs and 21 periods EMA. Relative Strength Index period 14 is above 40 levels pointing up to indicate a buy signal.