Cardano (ADA) has had a depressing 2018 along with the majority of the altcoin market — losing more than 97 percent from its all-time high.
ADA hit a new all-time low of $0.027 in early December but has since made a strong 91 percent comeback before reaching the descending line (upper pink) that it has failed to break out of throughout the entirety of 2018.
It is unlikely that there will be enough buying power to break out this time around either. If Cardano continues to be held under, its next move would be a second test of the horizontal support at $0.035 (red).
At the time of writing Cardano (ADA) is trading at $0.048 and is ranked 11th with a total market cap of $1.25 billion.
Taking a look at the stochastic relative strength index (RSI), ADA is approaching the top of the mid-range at 80. Historically, ADA has reached a value in the overbought territory between 90 and 100 before turning around and selling off.
Considering the heavy descending resistance that ADA is under, it is most likely that it will start to make its way back to the first target of 50 sooner than later.
The Ichimoku cloud indicator is used to try and predict levels of support and resistance. The value of ADA to BTC has been on a hot streak since the end of December.
However, as of today, the value has appeared to begin to falter, topping out at 1250 Satoshis and currently trading at 1200 Satoshis. Considering the stochastic RSI and its position under resistance, ADA will likely begin a plummet to retest the bottom of the cloud in the neighborhood of 1040 Satoshis to 1080 Satoshis as a first target.
An Icy Dive
A look at the ADA/BTC daily chart shows the strong December rally has resulted in hitting a wall at 1200 Satoshis with two wicks at the time of writing.
This signals that ADA might be about to lose steam and could make a return to its all-time low level at 850 Satoshis and may even test a lower-low around 780 Satoshis. Those looking to accumulate may want to use this range for maximum value.
Traders should be cautious of entering positions unless a confirmed breakout over the previous high at 1250 Satoshis occurs.
Do you have high hopes for a strong 2019 for Cardano (ADA)? Will ADA reach a new all-time low this year? 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.