The cryptocurrency market erased the prior days’ gain as a PBOC regulatory ban tagging all cryptocurrency-related transactions as illegal hit social media. Cardano (ADA) thereof declined from highs of $2.50 today to mark lows near the $2 mark as bulls tightened grip on the key level. At the time of writing, ADA was trading down by 5.33% at $2.23. In an attempt to debunk the report that led up to the market dip, TrustNodes published ”What China’s central bank said is just a re-iteration of what they said in 2017. Published on September 15th”.The PBoC originally released the updated guidance on Sept. 15 but posted it online on Friday, Sept. 24. Tagged ”the biggest blockchain event ever”, IOHK & Cardano teams & the global community will gather on the 25-26 September at Cardano virtual world & over 40 physical locations around the globe for the latest news & partnerships on the Cardano blockchain.
Key Levels
Resistance Levels: $3.16, $2.82, $2.51
Support Levels: $2.20, $1.90, $1.67
ADA/USD Daily ChartThe ADA/USD pair traded as high as $2.50 on sept.24 before starting a fresh decline as the entire crypto market plunged. The decline gained pace below the MA 50 at $2.37 to mark lows at $2.04 before a slight rebound. Near-term action is expected to remain biased higher while above the important MA 50( $2.37) level.
Repeated failure to clear above the MA 50 barrier(previously support) would signal extended sideways mode but with further downside risk. The RSI is hovering around the 50 neutral levels suggesting possible consolidation. On the contrary, the loss of the $2 psychological handle and $1.89 would weaken the near-term structure. In this scenario, the next major support remains near the $1.62 level which marks the MA 200.
ADA/USD 4-Hour ChartCardano is currently creeping sideways, constricted beneath the MA 50 and 200 after the pullback from the $2.79 double top on Sept. 12. On the upside, many hurdles are forming for the bulls, starting with $2.259 at the MA 50. The breakout resistance is near the $2.58 level or the MA 200, above which ADA/USD could retest the $2.79 hurdle.
Overrunning this, the pair could target the $3 range. On the downside, initial support remains at the $2.06 level. A break below the $2 round level could lead the ADA/USD pair towards $1.90.Overall, the very short-term bias is neutral for now, though dependent on the general market trend. A break either above $2.37 or below $2.04 could reveal the next major direction.
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