ADA Price Analysis: Extends Consolidation After Bulls Stalled at $1.36
Cardano (ADA) extends consolidation into the fourth consecutive day, following Apr. 6 surge up to $1.364.
*Cardano (ADA) remains in extended consolidation
*ADA price managed to regain traction and edge higher
*Cardano sees new listings and partnership
Cardano (ADA) remains in extended consolidation under February all-time high at $1.54. ADA made another attempt on Mar. 18 to break above the resistance at the all-time highs, the rally however stalled short at $1.51. ADA subsequently returned into the range between $1.03 and $1.36. Following the market sell-off earlier in the week, ADA price managed to regain traction and edge higher on Tuesday after Monday’s fall was contained by the MA 50 ($1.14). Cardano’s price action remains in consolidation while holding a positive tone. The mild intraday gains of nearly 2% signals that the downside is so far well protected by the MA 50 support.
Cardano Sees New Listings and Partnership
In April 8 blog post, British digital banking service Revolut has added Cardano (ADA) among another 11 cryptocurrencies for customers in the U.K. and European Union to trade. Revolut began offering crypto trading services in July 2017. On another note, to help the Cardano network upgrade its payment solution for the forthcoming Shelley mainnet launch, Cfund, the Cardano ecosystem venture fund, has made a strategic investment in Coti. Coti, which is short for “currency of the internet,” operates a fintech platform that supports stakeholder-driven payment solutions.
ADA Daily Chart: Ranging
Consolidation is holding above the protective daily MA 50 at $1.15. In case of declines, the convergence of the MA 50 and ascending trendline provides solid support at the $1.01 level, where extended dips should be contained, to keep bulls in play and avoid deeper pullback. Conversely, a repeated close above the $1.26 barrier would reinforce a bullish stance for eventual probe through $1.30 and $1.36 barriers that would expose a $1.51 high and signal a continuation of a larger uptrend from all-time highs at $1.54.
Presently, bulls need to close above the $1.36 barrier (which caps the action for now) to signal continuation and neutralize existing fears of the rally’s stall. The sideways-moving RSI hovering above the mid 50 reading continues to warn that bulls may be running out of steam while suggesting possible consolidation.
ADA 4-Hour Chart: Ranging
ADA/USD remains neutral as consolidation continues on the 4-hour chart since the pullback from the high of $1.50 that was hit on Mar. 18. The RSI reinforces the neutral outlook, hovering at the mid 50 reading. The focus now is on 4 hour MA 50 and 200 as Cardano (ADA) sits atop robust support reinforced by the moving averages. A break below the moving averages will be the first sign of weakness. Break below the MA 50 would extend the consolidation from $1.20 with another fall towards the MA 200 support at $1.17.
But in that case, strong support is expected from the $1.14 to $1.15 range to contain downside and bring rebound. The technicals are in mixed setup and lack a clearer direction signal for now. Summarizing, a sustained break of $1.36 would trigger bullish action and accelerate the rally towards $1.50 and open the way for upside gains to $2. Declines below the MA 50 will expose support at $1.17 (MA 200).
Key Levels
Resistance Levels: $1.5472, $1.4540, $1.3036
Support Levels: $1.1962, $1.1500, $1.1000
Image Credit: Tradingview
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