On Apr 2, Cardano initiated a rapid move and reached high above $0.1 on Apr 3.
After the high was reached, Cardano initiated a reversal and fell back below $0.1 within hours.
On Apr 5, a second reversal was initiated. However, at the time of writing, the price was still trading slightly above $0.09.
ADA Prices: Apr 2 – Apr 5
Cardano (ADA): Trends and Highlights for Apr 5, 2019
- Cardano has been on an uptrend since Apr 2.
- ADA/USD is trading inside a horizontal channel.
- There is support near $0.074 and resistance near $0.01.
We begin our analysis by tracing Cardano’s current pattern using the two-hour prices of ADA on Binance from Apr 2 to Apr 5.
On Apr 3, the price reached an hourly low of $0.084. Several market cycles have been completed since. The price has reached the same level three times.
Tracing these lows gives us a horizontal support line:
On Mar 22, the price made a high of $0.094 A gradual drop was followed by a gradual increase. The price has reached the same level four times.
Tracing these highs gives us a horizontal resistance line.
The resistance and support lines combine to create a horizontal channel:
It is likely that the price moves within the confines of this channel until a decisive move occurs.
In order to figure out the direction of the move, we need to look at past price fluctuations.
The price of ADA on Binance is analyzed at six-hour intervals from Mar 18 to Apr 5 in order to analyze previous movements.
On Mar 23, the price reached a high of $0.065. It proceeded to create several higher highs.
Tracing these highs gives us an ascending resistance line:
Cardano broke out from the resistance line on Apr 2.
However, the price subsequently dropped and touched the line on Apr 4. It then bounced back to touch the new resistance line traced in the last section.
The newly drawn resistance line and the resistance of the channel combine to create an ascending triangle.
We believe it is likely that the price drops to the resistance line turned support once more before breaking out of the triangle.
The price of ADA on Binance is analyzed at two-hour intervals from Mar 31 to Apr 5 in order to better assess resistance and support areas.
The first resistance area is found near $0.01, coinciding with the recent high of Apr 3. If the analysis in our previous section proves to be correct, the price will eventually reach this area.
The closest support area is found near $0.074.
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.
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