Cardano Value Evaluation: June 09 – AMBCrypto Information
Cardano has received a good boost from its technical updates: the platform will add intelligent contract functions to the blockchain. ADA took advantage of these developments when it peaked at $ 2.51 in May. However, this surge was short-lived as the correction kicked in across the crypto market. ADA was trading 35% below its high of $ 1.50.
Cardano hour chart
The downward volatility that hit Bitcoin first caused the remaining alts to lose value as well. The short-term picture of ADA also appeared increasingly bearish and very volatile.
Although ADA attempted to break through various levels of resistance from its bottom, selling pressure took over and pushed the value back down. This has happened twice now and with each push back the price has settled at a higher level than the price from which the recovery began. This can be seen in the diagram.
Could this mean there is another correction coming up?
The Fibonacci retracement levels have marked important resistances for ADA’s return path. Its value rose to $ 1.59 when a sudden dump dropped the price to $ 1.49. This was the 23.60% Fib level and was supported by the traders. The second time the price tested resistance it failed, but interestingly, it settled at 38.20% of the Fibonacci ratio. This noted a general upward trend in the value of ADA with constant correction.
This pattern suggests that ADA is currently experiencing an upswing and correction phase. With the price still showing downward pressure, it can potentially fall to the support at $ 1.49. RSI indicated that buying pressure was mounting while the Aroon indicator also indicated the easing bear market.
Entry level: $ 1.53
Take profit: $ 1.49
Stop level: $ 1.56
Risk and reward: 1.6
If ADA follows its existing course pattern, it could see another correction shortly. With selling pressure remaining minimal, ADA could move to retesting resistance. If the asset does not exceed this level, the price could see a further decline. Nonetheless, breaking the resistance could reverse the trend in the ADA market.
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