FxNews—Cardano has been trading sideways but mildly bullish since June 18, when it was $0.352, and is currently trading at approximately $0.398. This ADA/USD price development should be considered a consolidation phase even though the rate hovers above the 100-period moving average. The reason behind considering the current bullish wave as a consolidation phase is that the uptick momentum is weak and lacks consistency.
The ADA/USD 4-hour chart below demonstrates the crypto asset’s current price, the key Fibonacci levels, and the technical tools utilized in today’s analysis.
Cardano Analysis – 1-July-2024
In the 4-hour chart above, we depicted the current bullish momentum by adding a bullish flag and pointing out that Cardano trades above the 50- and 100-period simple moving averages. Other technical indicators suggest the uptrend is gaining strength, and the consolidation phase might extend to upper resistance levels.
- The awesome oscillator bars are green and above the signal line. They depict 0.001 in the value, suggesting the bullish trend prevails.
- The relative strength index indicates 61 in the value, floating above the median line, signifying the market is not overbought, and the uptrend can resume.
- The stochastic oscillator is not in the oversold nor overbought territory. The %K line value is 45, meaning the market is neutralized.
Cardano Price Forecast – 1-July-2024
The primary trend is bearish because the ADA/USD price is below the 38.2% Fibonacci retracement level. However, due to the signals we receive from price action and the technical indicators, the uptick momentum from $0.352 could extend further. That said, the key resistance is at $0.405. If the bulls close and stabilize the price above $0.405, the next bullish target will likely be the 50 Fibonacci at $0.421.
Notably, the bullish strategy should be invalidated if the Cardano price dips below the key support level of $0.385.
ADA/USD Bearish Scenario
The key support level is at $0.385. Should the bears (sellers) breach this deck, it will trigger the downtrend, and the next bearish target will likely be the $0.372 support, followed by $0.363.
Furthermore, the 38.2% Fibonacci at $0.405 is the key resistance to the bearish scenario. Should the $0.405 ceiling be breached, the bearish scenario should also be invalidated.
Cardano Key Support and Resistance Levels – 1-June-2024
Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.
- Support: $0.385 / $0.372 / $0.363
- Resistance: $0.405 / $0.421
Disclaimer: This technical analysis is for informational purposes only. Past performance is not necessarily indicative of future results. Foreign exchange trading carries significant risks and may not be suitable for all investors. Always conduct your research before making any investment decisions.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.
