Technical Analysis and Market Entry: Cardano (ADA) – Bulls are on a Launchpad and Next Jump is Near
- Cardano’s ADA is enjoying a solid run of gains; the price has been advancing north for three consecutive weeks.
- ADA/USDT is using a former tough acting area of supply as a new demand zone, which is encouraging for further upside.
ADA/USDT: Recent Price Behavior
Cardano’s ADA has been maintaining a decent pace in its recovery for 2019, with no signs of a slowdown. The price continues to trade around its highest levels since September 2018, when looking at ADA/USDT. It is trading some 160% higher since the beginning of the year, having been down at the low levels of $0.0350.
There are encouraging signs of stability following the recent jump higher; bulls are finding comfort at a recently breached area of resistance. The noted area runs from $0.0950-$0.0900, which had capped upside on several occasions since September 2018. Rejections were mostly seen in 2019; April, May and several times in June, before the breach occurred.
Weekly Chart View
ADA/USDT is running at its third consecutive week in the green, with the wind well behind the bulls’ sails. It is the best run higher seen in over ten weeks, as the price has advanced around 30% within the noted run north. As can be observed via the weekly chart, ADA at present is caught between two key zones: above $0.1050-$0.1150 and below $0.0950-$0.0900.
The significance of the supply zone seen ahead is that the price has not traded up within those heights since 6 September. It is important to note that this was a prior acting area of demand, having been in force between June and August 2018.
Daily Chart View
Price action has been to the upside following a bullish pennant pattern breakout. It had contained ADA since mid-May, but the bulls finally managed to force a break on 12 June. Between the noted date and 21 June, ADA/USDT was retesting the structure until it was used as a launch pad to the most recent gains seen.
Given the new acting demand area, which had previously served as supply, taking a buy is attractive. The proven comfort over the last four sessions has been seen with eyes now on further upside momentum.
In terms of target areas of interest; $0.1100 the initial level to watch. This is just above supply zone, where the price last traded in September 2018. Upon a breach above and momentum being carried through here, eyes will then be on the $0.1300-$0.1350 range. Lastly, the next significant territory of interest in the near-term would be $0.1600, heights not seen since July 2018. Stops upon entry for would be placed just below the noted demand zone, $0.0880, leaving a small amount of breathing room.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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