This article focuses on Cardano (ADA) in order to gain a better understanding of its present market scenario and to provide investors with insights by analyzing possible support and resistance levels and how Cardano might react to them.
Cardano (ADA) has been making headway in the digital asset market recently. The third generational blockchain platform’s goal is to provide an alternative to existing blockchain networks that is both more efficient and more environmentally friendly.
It is essential to do an analysis of Cardano’s technical indicators in order to have an understanding of the potential price movements of the cryptocurrency as it continues to develop and progress.
200- Day and 200- Week moving average
Cardano’s price is currently trading higher above its 200-day moving average, which is a bullish indicator for the cryptocurrency’s overall ascent. The chart, on the other hand, is displaying a pattern known as an ascending channel, which typically leads to a decline in price. In the event that it does break down, there is support located at $0.3530, which is still within the channel range.
On the other hand, looking at the weekly chart, we are currently trading below the 200-week moving average. This implies that there is resistance located around $0.60 if we go higher during the course of this month.
Inverse head and shoulders – Daily
In the daily chart, we are currently observing what could be an inverse head and shoulders pattern, which is a sign that the market is about to move upward in the next few weeks. It is possible for the upswing to continue if it manages to overcome the resistance at $0.40.
SAR – Daily
At this time, the Parabolic SAR indicator is indicating that the chart is participating in an upward trend. During the 27th and 28th of March, we witnessed the daily SAR climb above the price of the asset; nevertheless, this movement was finally invalidated, suggesting that the uptrend is still active.
Final Thoughts
Based on the technical analysis conducted above, it would seem that ADA is presently experiencing an upward trend. However, there are still certain resistance levels to overcome, which might lead to a price reversal or consolidation. It is impossible to predict how Cardano will react once it hits certain resistances, but typically, when Bitcoin’s price rises, other cryptocurrencies tend to follow suit.