The cryptocurrency market is a sea of red apart from a few selected Altcoins. Cardano has been trading in a robust uptrend since December 2020. After attaining a peak of $0.4149 on January 18, sellers’ pressure pushed ADA prices to lows of $0.29. A recovery kickstarted on Jan. 22 to highs of $0.3869, however, Cardano faces an uphill task capped by key resistance above $0.37. Amid declines to intraday lows of $0.29, consolidation extends on ADA/USD given Cardano’s Stablecoin launch. Cardano’s total market cap now stands at $11.26 billion with a trading volume of $4.02 billion in the past 24 hours. At the time of writing, Cardano is exchanging hands at $0.3155 after reaching intraday highs of $0.3453. ADA follows the lead of BTC, just like most crypto assets having lost 5.86% on the daily and 6.45% weekly. IOHK, Cardano’s parent company is collaborating with the Ergo Foundation and EMURGO to launch the first-ever Stablecoin asset on the Ergo blockchain. The Stablecoin asset called AgeUSD is intended to stand out from the baseline of Ethereum-backed smart contracts like DAI.
*Cardano faces an uphill task capped by key resistance above $0.37
*Cardano is exchanging hands at $0.3155 after reaching intraday highs of $0.3453
*IOHK, Cardano’s parent company is collaborating with the Ergo Foundation and EMURGO to launch the first-ever Stablecoin asset on the Ergo blockchain
Resistance Levels: $0.4000, $0.3700, $0.3500
Support Levels: $0.2900, $0.2750, $0.2500
ADA/USD Daily Chart: Ranging
ADA/USD Daily Chart
As seen on the daily chart, Cardano (ADA) retested the $0.29 support two consecutive times, on Jan 21 and 27. Cardano remains in consolidation while awaiting the next significant move. The RSI at the midpoint doesn’t give an advantage either to bulls or bears, a breakout or breakdown may occur at this point.
In a breakout scenario, if the bulls could manage a push past $0.39 to sustain above the $0.414 mark, a new uptrend with a target objective of $0.50 could resume. On the contrary, the minor resistance at $0.35 might pose a challenge to the bulls, forcing another retest of the $0.29 support. If the ADA/USD pair drops beneath the $0.29 support, a breakdown to $0.275 and $0.2395 at the MA 50 may be quite likely.
ADA/USD 4-Hour Chart: Ranging
ADA/USD 4-Hour Chart
On the 4-hour chart, ADA/USD recovery from the recent dip to $0.2774 has been limited under the MA 50 resistance cap at $0.3462. The primary mission among the bulls is to trade past this barrier to resume an uptrend to $0.40 and beyond. On the downside, a robust range of support is seen between $0.308 and $0.2786 coinciding with the MA 200, this may serve to cushion further losses.
However, if this support caves in, ADA may be forced to seek the next buyer congestion zone at $0.23 marks. The ADA/USD pair is only bullish while trading above the $0.35 mark, key resistance is found at the $0.37 and 0.40 levels.
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