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Cardano Ecosystem

Finbold

06/09/2024

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Breakout watch: Cardano key support and resistance levels for this week

Cardano (ADA) revisited the bearish $0.43 price, punished by macroeconomic indicators and overall negative sentiments in the cryptocurrency market. Finbold looked for insights on key support and resistance...

Breakout watch: Cardano key support and resistance levels for this week

Cardano (ADA) revisited the bearish $0.43 price, punished by macroeconomic indicators and overall negative sentiments in the cryptocurrency market. Finbold looked for insights on key support and resistance levels ADA traders should watch this week.

Notably, Cardano has been trading in a well-defined two-month range since April 14, from $0.43 to $0.50. During this time, ADA has made a few brief deviations from the price range but without breaking out.

Therefore, the $0.43 and the $0.50 levels remain the most important support and resistance to watch for. A breakout, followed by confirmation with increased volume, from any of these levels would bring a more aggressive move.

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However, there is still relevant resistance at $0.57, which previously worked as support before April’s breakout downwards. As of this writing, Cardano trades at $0.44 below the 30-day exponential moving average (30-EMA) at $0.46.

ADA daily price chart. Source: TradingView / Finbold

Cardano on-chain data for key support and resistance levels

Looking further, Finbold gathered on-chain data from IntoTheBlock on June 9, which highlights other Cardano key support and resistance levels.

In particular, the “In/Out of the Money Around Price” metric shows strong resistance at higher prices than current ones. The largest volume is within the $0.453 to $0.464 level, at an average of $0.458. 162,420 addresses purchased over 3.21 billion ADA at these prices and are currently in losses.

This resistance level coincides with the 30-EMA of $0.46 in the daily chart.

On the other hand, there is no relevant volume to the downside, suggesting weaker support to the range’s low for ADA. Nevertheless, 134,180 addresses purchased 1.59 billion ADA between $0.373 and $0.388, at $0.38 on average. This represents the most likely support level if Cardano remains with weak momentum and breaks down from its range.

In/Out of the Money Around Price. Source: IntoTheBlock

In conclusion, Cardano’s key support and resistance levels to watch are $0.38, $0.43, $0.46, $0.50, and $0.57. The resistance levels are more robust than the support, suggesting a downside breakout. It is important, however, to understand that cryptocurrencies are highly volatile digital assets, and indicators are not conclusive.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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ORIGINAL SOURCE

https://finbold.com/breakout-watch-carda...

Disclaimer: Cardano Feed is a Decentralized News Aggregator that enables journalists, influencers, editors, publishers, websites and community members to share news about the Cardano Ecosystem. User must always do their own research and none of those articles are financial advices. The content is for informational purposes only and does not necessarily reflect our opinion.


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