If there is a cryptocurrency that has completely dominated the price action by staying well above the historical 200 Day Moving Average, it’s Cardano, ADA. Our last Cardano price projection had ADA in a tight spot and within a short span of two weeks, Cardano has shown impeccable resolve to reach new heights. So much, that it transformed the earlier resistance into its immediate support, designated on the charts as immediate support 1.
This momentum has been a result of a significant rise in volume over a couple of days following the huge fall of May 19. Prices seem to be justified as per the chart patterns. The movement of ADA towards red has its roots attached to Elon Musk’s tweet. His prominence over retail traders is so high that the entire crypto market is bleeding, except a rare few, which have managed to hold on to the green.
RSI, however, is headed towards the neutral zones in a mid-way trend reversal. Under such circumstances, buying at a support level seems to be a better strategy. Traders can also take a position if it crosses the immediate resistance of $2.
Before Friday’s profit booking, Cardano price was close to hitting $2. After declining for more than 8%, there still is a huge scope for a down move, as the nearest active support is $1.50. Upmove is assured in this crypto-counter as there is no sign of fundamental weakness.
On the hourly chart the story of Cardano shows some improvement with positive buying in the last two hours, Heiken Ashi charts have generated the first green candle indicating a good buying side volume. We can expect a reversal towards the high of $1.85 if this candle turns into a positive momentum. On the downside, ADA is highly unlikely to fall below $1.50 levels. There is immense potential for an up move and positive traction as per our Cardano forecast.
RSI indicator is showing a trend reversal for oversold zones towards neutral of 40 on the histogram. It adds to the confidence of the Heiken Ashi pattern. Hence, it wouldn’t be surprising if there are follow up green candles witnessed on the hourly time frame. Trading in hourly charts is extremely risky since prices tend to move sideways before giving a clear breakout indication.