As we get closer to the weekend, Cardano (ADA-USD) traders and investors closely monitor key levels across multiple time frames. Cardano’s technical analysis reveals crucial support and resistance zones, informed by Fibonacci retracements and moving averages, painting a picture of potential price movements in the near term.
Support and Resistance from the Fibonacci Perspective
On the monthly time frame, two pivotal Fibonacci retracements demand attention: the first from the December 2022 low to the peak of the strong bar in May 2022, and the second from the swing high in February 2024 to the low of the strong bar in December 2023. The convergence of the 50% and 61.8% Fibonacci levels within the $0.545 to $0.55 range marks a critical support zone for ADA. Conversely, monthly resistance looms at $0.741, setting a clear target for bulls.
Shifting to the weekly chart, the support levels identified on the monthly chart should be expected to strengthen. Here, the 20-period Exponential Moving Average (EMA) sits at $0.56, while the 100-period EMA provides further support at $0.52.
Resistance on this timeframe is encapsulated within a shared zone, highlighted by the 38.2% Fibonacci retracement at $0.60 and the proximity of the 9-period EMA at $0.61. This suggests a consolidation of price action around these levels.
Daily Dynamics: A Closer Look at Resistance
The daily time frame sheds light on the immediate challenges facing ADA. The absence of near-term support beyond the monthly chart’s Fibonacci levels underscores the significance of the $0.545 to $0.55 support zone. Resistance, however, is a more layered affair, with several key levels stacked above ADA’s current price point.
The 100-period EMA at $0.594, the 9-period EMA at $0.605, and the 20-period EMA at $0.63 form a formidable barrier to upward movement. Additionally, the 38.2% Fibonacci retracement at $0.60 further cements the resistance cluster, indicating a tough path ahead for ADA.
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