Cardano (ADA) is a research-heavy, open-source blockchain and smart contract platform currently ranked tenth with a total market cap of nearly $1.1 billion. ADA, along with the rest of the cryptocurrency market, did very well in December of last year — climbing from $0.10 to $1.15 in the span of a few weeks.
Throughout 2018, however, ADA has seen significant losses totaling nearly 97 percent from its all-time high — last week reaching a new all-time low of $0.035.
Is ADA set up for a rally after a bit of consolidation, or will the bears come around again to drag the price down into lower levels?
Taking a look at the three-day and two-week stochastic RSI, we can see that Cardano is approaching the overbought territory.
The three-day RSI, historically, has always reached the 100 level after breaking over 80. Currently sitting on an RSI of 90, we can estimate the price will most likely remain in the $0.40 to $0.045 range before a minor sell-off ensues.
Cardano has fallen back from its all-time high at the beginning of 2018 within a descending channel, establishing horizontal supports on the way down.
Last week, ADA slipped another 50 percent from the $0.07 support (orange) and bounced off of a new all-time low level of $0.035 (red). It looks as though ADA has found a new support and will most likely spend the next two months trading sideways to consolidate and establish a base.Unless Bitcoin (BTC) makes another serious move to the downside, ADA is in a great buying position for the long-term holders and could potentially make for a lucrative swing trade come February of the new year. Click To Tweet
Be sure any to set stop-losses tailored to your risk allowance if you look to make a swing trade as the price is in unchartered waters with no pre-established supports to catch on the way down.
Can ADA hold on at the $0.035 level? Will ADA make a new all-time high in 2019? Let us know your thoughts in the comments below!
Images courtesy of TradingView.
Disclaimer: The contents of this article are not intended as financial advice, and should not be taken as such. BeInCrypto and the author are not responsible for any financial gains or losses made after reading this article. Readers are always encouraged to do their own research before investing in cryptocurrency, as the market is particularly volatile. The author of this article does hold ADA