After months of high volatility, most Altcoins intraday price movements have been more subdued in the past couple of weeks. However, we see crypto assets establishing a solid base for a potentially explosive rally as we move further in the final quarter of 2020. Cardano (ADA) is a smart contract platform focused on peer-review and scientific study, marketed as a third-generation blockchain. ADA has been in a short term range trading for the last 13 days after correcting from recent highs of September 1 at $0.128 to a low of $0.085. ADA/USD has attempted to break lower from the $0.085 zone but the bearish rejection came strongly to establish firm support. As price established a new higher high ADA/USD consolidates within $0.085-$0.100. The market cap is ranked 12th on the Coinmarketcap table and currently stands at $2.79 billion, with $951 million in trade volume over the past 24 hours. Cardano (ADA) has remained flat in price and is currently trading at around $0.090, with a price drop of 3.5% against the dollar. IOHK, the tech firm behind Cardano (ADA) launches a $250k Cardano fund to support developers to help publish the network’s decentralization further and attract entrepreneurs to its ecosystem.
*ADA/USD has attempted to break lower from the $0.085 zone but the bearish rejection came strongly to establish a firm support
*As price established a new higher high ADA/USD consolidates within $0.085-$0.100
*IOHK, the tech firm behind Cardano (ADA) launches $250k Cardano fund to support developers
Resistance levels: $0.125, 0.115, $0.100
Support Levels: $0.085, $0.075, $0.062
ADA/USD Daily Chart: Ranging
ADA/USD Daily Chart
ADA/USD slipped below $0.090 following the rejection from the key horizontal barrier at $0.100 earlier in the week. Bulls will now look to set a new higher low and possibly continue with the range trading between the $0.085 and $0.100 levels. ADA/USD is trading at $0.090 but attempted to crack beneath the $0.090 again unsuccessfully.
ADA’s daily chart is looking more of consolidation now that the price established a higher low and a higher high. The RSI is also trading in a straight line, but the ascending trendline support from mid-April is acting as a strong support level. Unfortunately, even if the bulls can push ADA towards $0.010, the colossal resistance cluster at that level will most likely push it back down.
ADA/USD 4-Hour Chart: Bearish
ADA/USD 4-Hour Chart
Cardano is starting to consolidate beneath the 4 hour MA 50, as traders await the next major directional move. A break under the $0.090 level could see the ADA/USD pair testing towards the $0.085 region. To the upside, a sustained breakout above the $0.095 level exposes further upside towards the $0.100 resistance area.
From a technical perspective, as long as Cardano closes Friday’s daily candle above $0.090 it will confirm that short-term momentum is favoring the upside. The ADA/USD pair is only bullish while trading above the $0.110 level, key resistance is found at the $0.115 and the $0.125 levels. If the ADA/USD pair trades below the $0.090 level, sellers may test the $0.085 and $0.075 levels.
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