Cardano Analysis / Crypto Market Analysis

Cardano Analysis – Price Consolidates and Key Levels

FxNews—Cardano‘s primary trend is bearish as the crypto hovers below EMA 50 and the 23.6% Fibonacci at about $0.469 against the U.S. Dollar. Interestingly, the ADA/USD broke out from the symmetrical triangle on May 16, but the uptick momentum eased when the price reached the 23.6% Fibonacci at $0.468 (Immediate resistance).

Cardano Analysis Daily Chart

The technical indicator signals neutrality and a low-momentum market. The awesome oscillator value is 0.008, with small and green bars looming above the signal line. The relative strength index value is 50, clinging to the middle line. Concurrently, stochastic floats in the middle, showing 64 in its %K line records.

These developments in the technical tools indicate a slow and sideways market in Cardano. That said, we conclude the ADA/USD cryptocurrency pair is in a consolidation phase, erasing some of its recent losses for the downtrend that began on March 14, 2024.

We zoom into the 4-hour chart to conduct a detailed analysis and find key levels and trading opportunities.

Cardano Analysis 4-hour Chart

Cardano Analysis Daily Chart

The technical indicators in the ADA/USD 4-hour chart also give neutral signals. The awesome oscillator bars are red, sticking to the signal line. RSI (14) shows the same value as the daily chart, attaching to the median line.

Only the Stochastic oscillator returned demonstrates some momentum in the %k line. The indicator has returned upside from the 20 level, showing 35 in its %K line. Concurrently, with the stochastic rising, the price bounced from $0.457 immediate support. This support level is backed by EMA 50 and Ichimoku Cloud.

Cardano Analysis – Price Consolidates and Key Levels

From a technical standpoint, Cardano is in a bear market, and the current uptick momentum can be considered as the pair consolidating price before the downtrend resumes. That said, analysts at Fxnews suggest planning your approach to the market according to the primary trend.

The 23.6% Fibonacci resistance at 0.492 is the immediate resistance, and the Ichimoku cloud stands between the bull and the bear market. If the bear maintains a position below the immediate resistance, ADA/USD will likely dip below the Ichimoku cloud. The downtrend could extend to the April low at 0.394 in this scenario.

The Bearish Scenario

Conversely, if the bulls cross above the 0.492 resistance, the weak bullish momentum begun in April can target the 38.2% Fibonacci at 0.522, followed by 0.553. This scenario should be invalidated if the price dips below the Ichimoku Cloud ($0.435).

Cardano Key Support and Resistance Level

Traders and investors should closely monitor the ADA/USD key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.

Support: $0.457, $0.435, $0.394
Resistance: $0.492, $0.522, $0.553