Let’s look at what I think are the five most important technicals levels for predicting where the Cardano price is heading.
Cardano is last trading at $1.4345, down -$0.043 (-2.96%).
With so much noise surrounding the cryptocurrency market, it can sometimes lead to information overload. Traders face a constant stream of conflicting headlines and price predictions that only serve to cloud their thinking.
So rather than add to the confusion, I have removed every indicator, bar one, from my Cardano price chart and identified the areas that matter most.
We have to go all the way back to November 2020 for the last time ADA closed below the 100 DMA. Cardano has always managed to close above this key indicator during the most volatile trading periods this year.
The average is currently at $1.4021, around 2% below the market price.
This is the first level of support.
$1.3150 – On the 20th of May, a day after the crypto crash, ADA made a low of $1.3200. The following day, the low was $1.3190. On the 23rd, despite trading down to $1.0400, ADA closed the day at $1.3150.
The next day the Cardano price opened slightly higher at $1.3169, and was trading at $1.8620 within 48 hours.
The price has since retested the level three times, with the latest bounce coming coming from yesterday’s $1.3180 low.
Therefore this is the second level of support.
$0.8900 – On the 14th of April, Cardano printed the previous all-time high of $1.5705. In the 11 days that followed, it crashed -43% before bouncing from $0.8900.
On May 19th ADA dropped 55% to $0.9100 (just 3% above the 14th of April low). However, within 24 hours, it was 115% higher.
Therefore, $0.8900 is the third and most important level of support. A close below this price could potentially have very negative consequences for ADA.
$1.8945-On May 9th, a second previous ATH was set at $1.8930 before correcting 25% in the following three days.
After peaking at $2.5148 on the 16th of May, Cardano dropped 25% before bouncing from $1.9000.
The 21st of May high was, $1.8940 and 2 days later, Cardano was -45% lower at $1.043.
Again on the 3rd of June, ADA topped out at $1.8944 and is now 30% lower.
On that Basis, $1.8945 is the first important resistance level
$2.3019-Was the highest ever closing price for ADA, set on May 19th. Within three days, the Cardano price was 60% lower.
Subsequently, I consider this the second major resistance level. If ADA can close above this price, it should go on to make yet another all-time high.
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