Cardano (ADA) Consolidates at the Bottom, Sellers Still Unrelenting

29 December 2019 | Updated: 29 December 2019

Key Resistance levels: $0.06, $0.07, $0.08
Key Support Levels: $0.05, $0.04, $0.03

ADA/USD Long-term Trend: Ranging
Cardano has continued its consolidation since September. The coin’s price movement has been insignificant. Currently, the ADA is trading at $0.033 above the $0.030 support level. The price has slumped from $0.050 in September to $0.033 in December. There is a likelihood that the price will fall or break the $0.030 support level.

A break below the recent support will portend negatively upon Cardano. However, if the price rebounds at the current support, the price will reach the $0.050 price level. Meanwhile, Cardano is characterized by small body candlesticks like the Doji and Spinning tops which describes the indecision between bulls and buyers.

ADA/USD - Daily Chart

Daily Chart Indicators Reading:
Even though the Cardano has been ranging for the past three months, the Fibonacci tool has its reversal at the 1.272 extension level. This is because a bull candle body tested the 0.786 retracements. In the meantime, the 21-day and 50-day SMAs are trending horizontally indicating the sideways move.

ADA/USD Medium-term bias: Ranging
On the 4-hour chart, the coin fell to the $0.033 Low and made an upward movement. The upward move was terminated at $0.042 resistance. The bears resume selling as the coin dropped again to the low of $0.0.032 support. The bulls’ pulled back to $0.033 and resumed consolidation at the bottom of the chart. ADA is making an upward move, a break above $0.036 will push the coin to $0.042 price level.

ADA/USD - 4 Hour Chart

4-hour Chart Indicators Reading
Cardano is trading above 75% range of the daily stochastic. This indicates that the coin is in bullish momentum. The EMAs are also horizontally flat indicating that the coin is consolidating. Cardano will revisit the $0.030 low if the support line is broken. ADA has the chance to rise if the current low holds.

General Outlook for Cardano (ADA)
Cardano is still consolidating at the bottom of the chart. The Fibonacci tool indicates that the coin will reverse at the 1.272 extension level. This is equivalent to the $0.030 price level. The coin may or may not reach the $0.030 low before reversal. ADA had been consolidating for a long period of time. It appears the period of a breakout or breakdown is imminent.

ADATrade Signal
Instrument: ADAUSD
Order: Buy
Entry price: $0.033
Stop: $0.030
Target: $0.060

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.