Analysis: Cardano (ADA) Surges 12% in 3 Days, More to Come?
Cardano has not had a bad day. The coin managed to rise several percent from a place that seems crucial, and can therefore possibly go even higher. Let’s look at the charts.
The Big Picture of ADA
To get a good idea of Cardano’s history, it’s good to grab a large chart. This allows us to look far back in time to pick out the most important price levels. Below you can see the weekly chart with three different red zones.
Almost every time ADA reached one of these spots, the price changed direction. It is therefore important to have these spots clear before analyzing the coin. It is more common that old price levels still influence today’s price.
Cardano is currently sitting right in the middle red zone, which means the other two zones are not important for now. Only if the coin ever finds its way back, it is good to do something with this. Until then, we have to make do with the middle red zone, where something very interesting is going on.
Response to middle zone
To better analyze this, let’s also take a look at the daily chart. Here, each candle is for 24 hours, which gives a better view of the past price action. When Cardano made this 12% increase, it jumped right off the bottom of the middle red zone.
The price reacts well to this, such a reaction is usually a precursor to a further increase. But to be more certain about that, it is important that the coin also starts an upward trend.
On the weekly chart, ADA has already passed its previous high, but on the daily chart there is still some work to be done. If the coin can rise past its previous high (of around 0.49 dollars) the expectation will be somewhat better.
This does not change the fact that Cardano – despite the downward trend on the daily chart – still looks very nice. A reaction to such an important price level usually means a lot of good. If the coin does not fall below the red zone, ADA will have a nice few weeks ahead of it, but it is important to keep an eye on this.
