On Mar 27, 2019, the Ledger Nano S hardware wallet began supporting Cardano (ADA). This means that Cardano can now be stored on the wallet along with other cryptocurrencies like Bitcoin (BTC), XRP (XRP), Ethereum (ETH), and many others.
The price of Cardano has been rising since Mar 21 when it reached a low of $0.05. On Mar 27, the price reached a high of $0.0681.
With the latest support from the Nano Ledger S, can we expect the price of Cardano to keep rising?
Cardano (ADA): Trends and Highlights for March 28, 2019
- Cardano has been on an uptrend since Mar 21.
- ADA is trading inside an ascending wedge.
- There is bearish divergence developing in the RSI.
- There is support near $0.06.
- There is resistance near $0.07.
We begin our analysis by tracing Cardano’s current pattern using the one-hour prices of ADA on Binance from Mar 21 to Mar 28.
The price reached a low of $0.05 on Mar 21. A gradual upward move ensued. Price has been making higher lows since.
Tracing these lows gives us an ascending support line:
On Mar 22, the price made a high of $0.065. A gradual drop ensued followed by a sharp increase. The price has made several higher highs.
Tracing these highs gives us an ascending resistance line. Together, they create an ascending wedge:
Because the ascending wedge is a bearish pattern, price decreases appear likely. It appears as if price may drop toward support.
To better assess future price fluctuation, we incorporate the relative strength index (RSI) into the analysis.
On Mar 27, the price made a high of $0.068. It has continued to create higher highs since.
During the same interval, the RSI acted differently. While it made the first high at around the same time as the price, they have proceeded to generate lower values since.
This is known as bearish divergence and often precedes drops in price.
It is especially effective if bearish divergence occurs in a bearish pattern and vice versa. This is the case with ADA since the ascending wedge is a bearish pattern.
Using these indicators and patterns, it is likely that the price will trade inside the confines of the wedge dropping toward the support before a possible breakdown.
The price of ADA on Binance is analyzed at one-day intervals from Sep 1, 2018 to Mar 28, 2019 to better assess reisstance and support areas. This indicate possible future price levels.
The first resistance area is found near $0.07, coinciding with the top of the wedge. It is a very significant level of resistance. A breakout above this level could trigger rapid price increases. According to our analysis, it is unlikely that the price will move above this area.
The closest support area is found near $0.06. If the price were to break down from the wedge, this would provide a likely reversal area. Based on our analysis, it is likely that the price eventually reaches this area.
Summary of Analysis
Based on our analysis, the price of ADA will likely move inside the confines of the ascending wedge. We believe the price will drop despite the recent support for Cardano by the Nano Ledger S.
Do you think the price of ADA will break out or break down? Let us know in the comments below.
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.