Analysis: Can Cardano (ADA) return to $0.56 soon?
Cardano’s price has been very quiet for a number of weeks. The coin moves just above a key price level, but is not exactly in an up or down trend; the price goes sideways. If the coin shoots up from here, the first strong resistance will be around $0.56. Let’s look at the graphs.
How is ADA doing?
To get a good idea of all the important long-term price levels, we must first look at the weekly chart. Here each candle represents 7 days, allowing us to look far back into the price. Below we see two red zones, a blue zone, and a blue line.
To make this very short: all levels above the current price serve as resistance, and the levels below as support. We can therefore leave the upper red zone and the blue line for what they are for a while. The coin must first break through the blue zone to reach these levels.
The bottom red zone and this blue zone are the most important at the moment. The red zone is a place where the price has already changed direction several times. At the moment, the price is settling at this level, but is not making convincing higher or lower price points.
Trend not yet determined
To see this better, let’s take a look at the daily chart. Here each candle does not represent 7 days, but 24 hours. This gives us a better picture of the price zones, but also of the trend – indicated in this image with orange arcs – which is not convincingly upward or downward.
In all likelihood, a higher high or a lower low will lead the rest of the price movement. The coin has been waiting for more confirmation for a while now. ADA shows little volatility, while the price clearly remains strong above this price zone.
This makes it somewhat more likely that the currency can rise from here. For this I would first like to see a higher highlight than one of the two top orange arcs. In that case we can only say that ADA is on an upward trend.
The next (major) resistance will then be the blue zone of approximately $0.56. This would represent an increase of almost 25%. It is important that the coin does not lose the red zone. Therefore, keep a close eye on this level and the ADA trend!
