with cardano [ADA] Approaching short-term resistance, you can:


disclaimer: The following analysis results are the sole opinions of the authors and should not be construed as investment advice.

On May 12, the Cardano whale was very active. mood data High-priced transactions surged the most since January. Was it a buy-dip moment, or could the holder suffer more? Although the price has already risen 31% from its lows, the market structure of the lower period did not really favor bullishness.

ADA- 1 hour chart

Source: ADA/USDT on TradingView

The Fibonacci retracement level (yellow) was marked against the decline of the ADA from $0.7 to $0.4 10 days ago. After this decline, the price was unable to cross the $0.6 and $0.58 resistances. The asset’s price movement over the past few days has shown two worthy levels to watch out for.

Values ​​shown in white dotted lines are as low as $0.489 and as high as $0.615. Last week, ADA appeared to be in a range between these two levels, with the $0.54 level being significant last week as well.

At press time, the ADA was able to move above the 38.2% retracement level, but still faced resistance at $0.54 and $0.55. A trader can move to $0.489 to consider buying, or move to the $0.6 area and consider selling crypto assets.

rationale

Cardano approaches short-term resistance zone, but patience remains key

Source: ADA/USDT on TradingView

The RSI was 56.7 at press time, suggesting weak bullish momentum. The 57.2 and 34.7 levels have been somewhat significant in the RSI over the past few weeks. It should cross the 57 and 60 values ​​to indicate strong bullish momentum behind the ADA.

But there was no sign of that momentum going to stop. The MACD has lost strength at its zero line and has been lethargic over the past few days and the Stochastic RSI has been in overbought territory and could form a bearish crossover in the coming hours.

OBV posted a series of lower highs last week, highlighting the seller’s dominance on the price chart.

conclusion

The $0.489 and $0.615 levels can be used to trade ADA like range-limited assets, and breakout traders want to see a breakout to ride the next trend. Bitcoin also needs to see strong moves for Cardano to see a breakthrough in either direction. Demand has been lacking as the situation holds, and there may be another drop in the corner.

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