Disclaimer: The findings of the following analysis is the sole opinion of the writer and should not be taken as investment advice
The Cardano market recently witnessed a drop and has been trying to recover. The value had dropped to $0.3044 and at the time of writing, the coin was trading at $0.3207. This recovering price may provide an opportunity for traders to go long on the digital asset.
Cardano one-hour chart
Source: ADAUSD on TradingView
The above chart of Cardano showed a sudden drop in the value followed by a retracement. However, the value of the digital asset has been moving between the restricted range of $0.2970 and $0.3451. This range indicated that the recovering value of the digital asset may retest the resistance at $0.3451.
Reasoning
The Relative Strength Index value dropped indicating the selling pressure in the market, however, the recovery has been pushing Cardano into the equilibrium zone. The selling and buying pressure of the digital asset will be evened out at this stage.
However, the momentum in the market has reduced and the value of the awesome oscillator indicator has dropped under zero.
Whereas, the bullishness of the market had also reduced as the 50 moving average which was well under the price bars has been overlapping with the candlesticks and as the price recovers, the moving average continues to remain under the price bars.
Important levels
Entry: $0.3219
Stop-Loss: $0.3074
Take-Profit: $0.3450
Risk-to-Reward: 1.6
Conclusion
ADA’s trading price has been recovering from a recent fall and as the price moves higher towards the resistance it may award small profit to the traders who go long on the cryptocurrency. Given the resistance at $0.3451, traders will be able to take profit at $0.3450. This can happen provided the Bitcoin market does not witness a strong change in trend.
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