Disclaimer: The results of the analysis below are the author’s sole opinion and should not be considered investment advice.
May 12, Cardano Whales are very active, Santiment data It has shown the largest surge in high-value transactions since January. Was it the moment of purchase, or was the holder likely to experience more pain in the future? Prices have already risen 31% from these lows, but the lower timeframe market structure did not really support the bulls.
ADA-1 hour chart
Fibonacci retracement levels (yellow) were plotted for a decrease in ADA from $ 0.7 to $ 0.4 10 days ago. Since this fall, prices have not been able to exceed the resistance levels of $ 0.6 and $ 0.58. Asset pricing behavior over the past few days has shown two valuable levels to watch out for.
Marked in dotted white, these are a low of $ 0.489 and a high of $ 0.615. Last week, ADA appeared to be between these two levels, and last week the $ 0.54 level was also important.
At the time of the press, the ADA was able to exceed the retracement level of 38.2%, but still faced resistance of $ 0.54 and $ 0.55. Traders can wait for a move to $ 0.489 before considering a purchase, or wait for a move to the $ 0.6 territory and consider selling crypto assets.
The RSI at the time of the press was 56.7, suggesting that the bullish momentum is weak. In the last few weeks, the 57.2 and 34.7 levels have had some importance to the RSI. To show strong bullish momentum behind the ADA, it needs to rise above the 57 and 60 values.
Still, it seems that there was no such momentum brewing. MACD has been lethargic for the past few days as it lost steam at the zero line. The Stochastic RSI was in the overbought territory and could form a bearish crossover in the next few hours.
OBV posted a series of low highs last week to emphasize that sellers have an edge on the price chart.
The $ 0.489 and $ 0.615 levels can be used to trade ADA like limited range assets, but breakout traders will want to see breakouts to catch the next trend. In order for Cardano to see a breakout in either direction, Bitcoin also needs to see a strong move. Things were standing, so demand may be lacking and another drop may be around the corner.