Cardano (ADA), a crypto that continues to push backers

On this first AT Monday of 2023, we will focus on the ADA cryptocurrency of the Cardano blockchain. our recent asset analysis, dated last August, evoked the ADA’s confusing situation. In the turmoil, she took the heavy route, knocking down many supports. Could this dynamic, which is still current, end one day? Today, let’s turn to TradingView to analyze the asset’s key levels and biases it should have for this early 2023.

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A relatively strong weekly downward trend

ADA rate against the dollar every week (1 W)

First of all, we can see the strength of downward trend which has been running on the asset since the end of 2021. This has been highlighted since last July with the unlikely recovery of the EMA13 on a weekly basis, which indicates the strength of sellers as well as the lack of investor interest in the asset.

Thus, ADA has never stopped falling and is now heading towards $0.254 where the asset may react with a pullback. However, this is not the most important level. Thus, ADA can completely break this support, which leads us to look at additional levels located at:

  • $0.152, one old resistance which became support in late 2020 before ADA erupted higher
  • or Pivot zone at $0.10/$0.11 to which the ADA has technically reacted since 2018, either as support or resistance. Thus, in case the price returns to this level, we should probably expect a bullish reaction.
  • If all these levels do not hold, the doors will open for one the asset returns to $0.062, a previous resistance.

Is a trend reversal possible for the ADA?

ADA price against the dollar on a daily scale (1D)

Now, for this second part of the analysis, let’s seedaily rate to identify key levels in case of a trend reversal. First of all, let’s understand that the trend is also bearish in this timeframe. To hope for a trend reversal, the ADA will first need to break the previous high (red circle) as well as the EMA13 to hope for a split of the two upper EMAs. In this context, the ADA can be turned to $0.306/$0.309former November-December support area.

If ADA continues its upward momentum and regains this area, then we can add new key levels to watch:

  • of resistance at $0.33 approaching the MA100 represented in black.
  • of technical level at $0.36 to which there was a price reaction
  • of dual technical levelof $0.402 and $0.426

Here are all the levels you should watch daily for a bullish trend reversal ADA. It is possible for sellers to show up at a certain level and prevent the asset from going any higher.

Here we are at the end of this analysisthe native cardano blockchain asset. Unfortunately, given the current context and what’s on offer in the courses, let’s keep a low bias on the asset. However, this is not conclusive as it is quite possible to witness a reversal of the uptrend if the asset manages to retrace certain levels identified on the daily scale. Always navigating the uncertainty of the markets, one should not have unreasonable objectives and evolve in stages by having a good risk management.

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