What analysis would you like to see? Every week we conduct a survey on our social media. Here you can vote for the next altcoin review. This time Cardano (ADA) came out victorious, so let’s look straight at the prize.
Negative close weekly candle
Since ADA just closed a weekly candle, let’s start this time with the Cardano weekly chart. Each candle here represents 7 days. The image below shows two large blue zones. The top currently serves as resistance and the bottom as support.
We continue here with last month’s analysis, when the coin reached the upper blue zone. At this point, it would be very positive if the price trend broke immediately.
But as we can see on the chart, there were not enough buyers to push ADA into the upper zone. There, last week’s candle was rejected and then closed in the red. The ADA exchange rate is now 35 cents. Which brings us to the next question: Where does Cardano’s decline end?
Where is the ADA going?
To better analyze this, we use the daily chart. Here each candle represents 24 hours. There is still a small blue zone visible, less visible in the image above. We also talked about that in the previous review.
This little blue zone can provide much-needed support right now as the downside scenario could be devastating. Let’s start with this: If ADA loses this zone, there are two possible supports: the earlier low (around $0.244) and the lower blue zone (around $0.17).
Although these scenarios are very negative, a positive scenario is also conceivable. As you can see, ADA was already using the small blue zone as support when the price broke out. The price may bounce here and then bounce back to the big blue zone. From here the question arises whether it will be possible to cross this zone a second time.
It is therefore important to keep an eye on the little blue zone. Note: Price can also try to immediately break the main resistance. After the latest rejection at this point, this is just not very likely.
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Source: Btc Direct
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Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
