Cardano (ADA) Continues to Range but Stuck at $0.035 Support

Cardano (ADA) Continues to Range but Stuck at $0.035 Support

Key Resistance levels: $140, $160, $180
Key Support Levels: $80, $60, $40

ADA/USD Long-term Trend: Ranging
Currently, Cardano is in a sideways trend as sellers exhaust selling pressure. In the ascending channel, ADA was in an uptrend. The bulls were contending the price at $0.090 overhead resistance . In the first resistance, the coin fell to a low of $0.060. The bulls made other attempts at the resistance but were resisted. On June 27, ADA finally dropped to a low of $0.05 in July.

However, after a retest at $0.06, Cardano fell to the bottom of the chart.
The selling pressure has been exhausted as the coin fluctuates between the levels of $0.035 and $0.050. The coin is trading at the bottom of the chart as the bears are putting more pressure at the support to break it. A breakdown at the current low will push the price to the low of $0.030. ADA will move up to $0.060 if the resistance line is breached.

ADA/USD - Daily Chart

Daily Chart Indicators Reading:
The Relative Strength Index period 14 level 39 indicates that the market is approaching the range-bound zone. The 12-day EMA and the 26-day EMA are trending horizontally indicating a sideways trend.

ADA/USD Medium-term bias: Ranging
On the 4- hour chart, Cardano is in a range bound movement since September. The coin fluctuates between the levels of $0.035 and $0.045. The bulls have not been able to penetrate the resistance on two occasions. The bears have put pressure at the support to break it. A breakdown or a breakout will determine the direction of the coin.

ADA/USD 4-Hour Chart

4-hour Chart Indicators Reading
The coin is currently in a bearish momentum as ADA is trading below 40% range of the daily stochastic. The EMAs are sloping horizontally indicating the range-bound movement.

General Outlook for Cardano (ADA)
Cardano is in a sideways trend. The coin will sink if it faces selling pressure at the bottom of the chart. ADA lacks buyers at lower price levels. The introduction of more buyers at the support will propel the coin to rise and reach upper price levels. A break at the resistance will make the coin to rally above $0.060 price level.

ADATrade Signal
Instrument: ADAUSD
Order: Buy
Entry price: $0.035
Stop: $0.030
Target: $0.060

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.