Cardano at the time of this article is currently trading at $0.0839 against the US Dollar, which looks to have found support at this price for the past week.
A slow down in volume struggled to keep Cardano above $0.09 with numerous attempts to break past, which may lead traders to think if we could see ADA drop lower?
The bears and bulls have really battled for direction on this Cryptocurrency within the last few days and the number of wicks that have occurred on the daily candles would suggest the general consensus remains fairly indecisive.
Cardano Price Analysis
Since finding support around $0.03 in December, Cardano remained fairly quiet to suggest the bottom was found around this level. Accumulation continued until the beginning of March, which led to an impressive 135% run-up in price leading into April.
An attempt was made by the bulls to continue on this bullish momentum to push past $0.09 and test $0.10 but was instantly met with multiple rejections on the daily timeframe.
Price resistance around this region was enough to signify a further breakout was unlikely and we have since seen ADA find support at $0.08.
A slight worrying factor on the daily time frame would indicate volume has substantially decreased and a retest of $0.073 could be expected.
Cardano building confluence within $0.835 – $0.918
The highlighted grey box indicates ADA is currently building confluence within this zone with multiple failed attempts to close outside of this region. Although multiple wicks have been outside of this boxed zone, a closure back within has indicated accumulation could be happening within this area.
The only closure outside of this boxed zone was between 15-16th April, however, the daily candle has since closed back within – A further increase in volume will be important to keep ADA back within this zone in order to climb higher!
Final Thoughts
ADA currently seems to be trapped in a battle between bulls and bears and the long wicks on either side of the daily candles would lead me to think there is no definitive control over short-term direction.
The 200D EMA could act as support if $0.07 is met however if bulls manage to take control, a retest of $0.09 will certainly be in play.
Can Cardano finally push past this key resistance?
