Cardano (ADA) is a third-generation blockchain created in 2017 by Charles Hoskinson, a fairly well-known personality. He is the co-creator of the Ethereum project. The main objectives, claimed by the team, are high scalability as well as security. Operating in PoS (proof of stake), Cardano has a native token, the ADA. Let’s see the major technical areas that will serve as benchmarks in the coming weeks.
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Cardano : “To let go of the ballast” against Bitcoin?
In january 2018, the ADA has registered a Weekly ATH, in closing, at 6 093 satoshis. Unfortunately, the festivities were short-lived, as the project quickly lost strength against bitcoin (BTC), and over a long period of time. Subsequently, the long downtrend gave way to a period ofaccumulation (large gray rectangle) of 322 days between 447 and 625 satoshis.
Suddenly exiting this zone of accumulation to make it a support, the ADA then strengthened against BTC, by registering in a beautiful uptrend from early 2021. Evolving between support and resistance, there was a comeback to the 2018 ATH, but a new rejection occurred, putting the ADA in a whole new downtrend.
Now what should we watch out for? It turns out that the area at 3,257 satoshis did not act as support, paving the way for a return to lower levels. The descent into hell seems to continue on a weekly basis. It is therefore necessary to keep in mind the next major support between 2130 and 2292 satoshis, corresponding to a technical zone where the price reacted many times on the weekly scale. In case of a bearish breakout, the path will theoretically continue towards lower levels.
Conversely, in the event of a rebound in this area or a premature reversal, the ADA will aim to regain its previous support. A close greater than 3,257 satoshis would therefore be, in this case, very positive for the rest of the events, since we could thus establish a new goal from price to 3 820 satoshis (gray area between lost support and ATH).
L‘ADA on a critical level against the dollar
The weekly pattern of the ADA against the dollar is similar to that of bitcoin. After an ATH of 1.4 dollars if we take into account the wick of the candle, the ADA has entered a long-term downtrend, subsequently following a period ofaccumulation. The release at the end of 2020 was very violent, taking the token to unprecedented heights with a ATH at $ 3.16 at the end of August.
However, although there was no rejection on a former ATH, the buying trend faltered in favor of a raround the sellers who want to push ADA on old media.
The old support, effective for many weeks, seems not to hold. Of course, it will be necessary to wait for the next weekly close in order to have confirmation of this potential movement.
If confirmed to break out support at $ 1.30, we may have a return to the area 0,98-1,05 dollar, a relevant level which corresponds to the old ATH of 2018, at weekly closing. Conversely, if the ADA manages to keep $ 1.30 and support, we could consider a potential trend change. Let’s move quickly to daily in order to see a little more clearly.
A tough fight between buyers and sellers
On a daily basis, we see this fight between buyers and sellers to defend, or not, the area of 1.30 dollar. In the event that we have the resumption of this support, we can consider a potential return on higher levels. Firstly, 1,78-1,90 dollar And on the other hand, 2,26-2,33 dollars. As explained previously, it will be necessary to monitor the weekly scale. Thus, we will have a more important confirmation on the fluctuations which are acting at this very moment on the daily and intra-daily scale.
With this analysis, you should have in mind the key weekly and daily ADA levels, whether against bitcoin or the dollar. From now on, it is necessary to wait for the next weekly closing. We will then be able to have a better idea of the directionality that the token could take at the end of 2021, but also at the beginning of 2022.
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