Interesting Time to Trade Cardano – Key Levels to Watch
Even as the crypto market overall appears to be exhibiting signs of sideways trading, one of the digital currencies showing some promise of bullishness on Monday is Cardano. At the time of writing, ADA is trading above $1.22.
The price is holding well above the 100 SMA on the 4-hourly chart at around 1.17. Cardano faced some resistance at the 1.22 level, and a break and hold above this could spell further buying interest which could strengthen prices further. However, if the resistance holds and the price is unable to cross this level, then we could very well see sellers entering the market, exerting downward pressure on ADA/USD in the near term.
The past few sessions saw considerable movement in Cardano, with prices falling close to the $1.00 level before the upside momentum took over and propelled ADA higher. The resistance at $1.10 was overcome with ease, setting the way for the digital currency to rise above $1.20 level as well.
The price has now managed to overcome the next resistance at $1.220, and technicals suggest an uptick in Cardano all the way up to above $1.33. However, if the price is unable to sustain above this level, ADA/USD is likely to encounter strong support a little above $1.16, making it a level of interest. A failure of this support level could spur further bearishness in Cardano and cause a slide in prices all the way down to the $1.00 level all over again, which is the next major support level worth monitoring.