CARDANO PRICE ANALYSIS & PREDICTION (October 1) – ADA Negotiates Immediate Resistance For More Recovery – Incoming Breakout?

0

Most altcoins have posted impressive gains since last week due to an enhanced volume across the crypto space. Large-cap like ADA has bounced slightly from its five-month low with 4% gains in one week.

In April, Cardano rejected the $0.46 level and started to lose momentum after testing the level as the yearly high. During that period, the price crashed to a low of $0.22 in mid-year and quickly recovered to a high of $0.38 within a month.

A rejection at this mentioned high triggered another selling pressure for two months. However, volume dropped a bit as there was not much supply to plummet the price below the mentioned mid-year low. 

Interestingly, it found temporal support after reacting well to the $0.24 support level in September. That support provided a bounce and the price increased slightly to where it currently changes hands at $0.255.

While this bounce led to a brief suspension in negative actions, it has continued to show signs of strength by the day. If volatility expands in the next couple of days, we can expect a strong price movement towards the descending trendline, which has been serving as resistance since April.

Crossing this resistance line could fuel a short-term rally to $0.323 and $0.38. On the other hand, a big sell-off should be expected if the price plunges below the current support level. Despite the recent gains, ADA remains bearish from a mid-term perspective.

ADA’s Key Levels to Watch

Source: TradingView

ADA is currently facing a weekly resistance of $0.26. A daily candle close above this resistance could advance the price to $0.28 and $0.30, where the resistance line lies.

If a pullback occurs, the level to watch is $0.25. A drop below last month’s low could make the price test $0.22 and potentially $0.20 in the next drawdown.

Key Resistance Levels: $0.26, $0.28, $0.30

Key Support Levels: $0.24, $0.22, $0.20

  • Spot Price: $0.255
  • Trend: Bullish
  • Volatility: Low

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news!

Image Source: iuriimotov/123RF // Image Effects by Colorcinch

About Author

Michael is a professional trader and cryptocurrency technical analyst with many years of trading experience. He became passionate about cryptocurrencies and blockchain technology through his sister and has since been following the industry

Leave A Reply