Most digital assets are trading lower in the cryptocurrency market on Monday. Cardano (ADA) declined to lows of $1.36 during Monday’s trading before slightly recovering to where it trades. At the time of writing, ADA was exchanging hands at $1.42, down by 2.85% on the day. With a present market valuation of $45.51 billion, Cardano has secured the 5th spot in cryptocurrency ranking by market cap. Despite the dip, ADA holds in the upside tendency it started after the bounce off the MA 200 ($0.98) on June 22 and more increases could come if there is a break of the upper part of the recent range at the MA 50 ($1.51). Grayscale Investments has reduced Bitcoin’s share and added Cardano to its Digital Large Cap Fund. With the introduction of Cardano, ADA now accounts for 4.26%, making it the fund’s third-largest after BTC and ETH.
Key Levels
Resistance Levels: $2.51, $2.03, $1.50
Support Levels: $1.20, $1.00, $0.79
ADA/USD Daily ChartADA is edging slightly lower after reaching highs of $1.49 on July 4 but still holds the upside tendency started on June 22. ADA/USD is trading in a minor ascending trendline pattern. However, it was spotted on Monday that around the $1.48 level was providing the price with resistance. If the ascending trend line pattern holds, bullish traders might pressure the ADA/USD pair higher within the next sessions. In this scenario, ADA could reach the resistance range between $1.48-$1.53 (MA 50).
A bullish breakout above the MA 50 ($1.53) will target the $1.89-$1.98 resistance range. A sustained breach past here gets ready for a retest of the all-time highs at $2.51. Alternatively, if the ADA/USD pair extends the pullback, immediate support could arise from the $1.20 level. Below this line, the $0.98 level which marks the reinforced support of the MA 200 and the minor trendline may come to aid. The RSI around the 50 neutral marks suggests possible consolidation.
ADA/USD 4-Hour ChartADA rose to highs of $1.49 after a buying spike since June 22, surpassing the MA 50 ($1.36). ADA is returning lower after attempts to briefly pass the MA 200 at $1.45 failed. More negative pressures would send ADA/USD price to check the MA 50 support at $1.36. If traders continue to sell the pair, more declines could meet support at $1.19 before resting near the June 22 low at $0.98, which overlaps with the minor trendline support.
Alternatively, if the market reverses up, strong resistance, which lies near the MA 200 ($1.45) could come. If ADA price overcomes this critical level, the resistance levels at $1.54 and $1.89 could come into the spotlight. Higher still, ADA could hit the all-time highs at $2.51. To sum up, ADA remains in a neutral mode as seen from the RSI and a sustained climb above the moving averages could confirm a further bullish bias.
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