Observing Breakout Key Support and Resistance Levels for Cardano in the Coming Week
Cardano (ADA) has once again dipped to the bearish $0.43 price, affected by macroeconomic factors and negative sentiments in the cryptocurrency market. Finbold has examined the key support and resistance levels that ADA traders should keep an eye on this week.
For the past two months since April 14, Cardano has been trading within a narrow range of $0.43 to $0.50. Although there have been some minor fluctuations within this range, ADA has yet to break out from it. Therefore, the $0.43 and $0.50 levels are crucial support and resistance levels to monitor. A breakout from either of these levels, confirmed by increased trading volume, could lead to a more significant movement.
Additionally, there is still strong resistance at $0.57, which previously served as support before a downward breakout in April. Currently, Cardano is trading at $0.44, below the 30-day exponential moving average (30-EMA) at $0.46.
Analyzing on-chain data from IntoTheBlock on June 9, Finbold found that there is substantial resistance at higher price levels compared to the current price. The most significant volume is concentrated between $0.453 and $0.464, with an average of $0.458. Over 162,420 addresses purchased more than 3.21 billion ADA at these levels and are currently facing losses.
On the other hand, there is less significant volume to the downside, indicating weaker support at the lower end of the range. However, 134,180 addresses bought 1.59 billion ADA between $0.373 and $0.388, averaging $0.38. This level is likely to act as support if Cardano experiences weak momentum and breaks below the range.
In summary, the key support and resistance levels for Cardano are $0.38, $0.43, $0.46, $0.50, and $0.57. The resistance levels appear to be stronger than the support levels, hinting at a potential downside breakout. It is essential to remember that cryptocurrencies are highly volatile assets, and indicators may not always be definitive.
Disclaimer: The information provided in this article should not be considered as investment advice. Investing in cryptocurrencies carries risks, and investors should be aware that their capital is at risk.
