Breakout watch: Cardano crucial levels to monitor this week
Cardano (ADA) has been experiencing a downward trend, primarily influenced by macroeconomic indicators and negative sentiments prevailing in the cryptocurrency market. Finbold has examined the key support and resistance levels that ADA traders should be mindful of this week.
For the past two months, Cardano has traded within a well-defined range, spanning from $0.43 to $0.50. Although there have been minor deviations from this range, Cardano has yet to break out significantly.
The levels to watch closely are $0.43, which serves as the crucial support, and $0.50, which acts as a significant resistance level. If Cardano manages to break out of this range, confirming the move with increased trading volume, a more aggressive movement can be expected.
Additionally, there is notable resistance existing at $0.57, as it previously functioned as support before the downward breakout in April. Currently, Cardano trades at $0.44, positioned below the 30-day exponential moving average (30-EMA) of $0.46.
On-chain data from IntoTheBlock, collected by Finbold on June 9, highlights further support and resistance levels for Cardano. The “In/Out of the Money Around Price” metric indicates strong resistance above the current prices. The highest volume is found within the $0.453 to $0.464 level, with an average of $0.458. Addressing over 3.21 billion ADA, approximately 162,420 addresses are currently facing losses.
This resistance level coincides with the daily chart’s 30-EMA of $0.46.
In contrast, there is no significant volume to support Cardano’s downside, indicating weaker support for the lower end of the range. However, around 134,180 addresses purchased approximately 1.59 billion ADA between $0.373 and $0.388, with an average of $0.38. This represents the most likely support level if Cardano remains in a weak momentum state and breaks down from its current range.
To summarize, the key support and resistance levels to monitor 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, potentially suggesting a downside breakout. It is crucial to recognize that cryptocurrencies are highly volatile digital assets, and indicators should not be taken as conclusive.
Disclaimer: The information provided on this website should not be regarded as investment advice. Investing in cryptocurrencies carries a speculative nature, and the capital you invest is at risk.