Technical Analysis for ADAUSD for 5th October 2022
Cardano Reversal Positive, will ADA Reclaim $0.50?
Past Performance of ADA
Cardano is up three percent on the last trading day as ADA turns around after the discouraging rout of late September. Even though the primary trend remains bearish and technical indicators blinking red, pointing to sellers, ADA may be turning the corner if recent gains are anything to go by. The immediate support line is around $0.40, while the resistance level is at $0.50.
Cardano Technical Analysis
ADA is up in green at spot rates. The recovery follows recent losses at the back of decreasing trading volumes. While encouraging, how ADA performs in the short term depends on whether traders believe the bottoms are in. Therefore, confirmation of the past two day's rejection of lower prices may signal bottoms. Conservative traders may look to accumulate once there is a high volume close above the middle BB, lifting prices above the $0.47 and $0.50 zone, targeting $0.55 and later $0.60. This expansion will convincingly reverse the losses of September 18, whose bar continues to shape the current trend. Unexpected losses below $0.40 and last week's lows may fast-track the liquidation towards $0.30 in a bear continuation formation.
What to Expect from ADA
Cardano activated Vasil, and the network is now more performant and scalable. Although this may catalyze demand, ADA appears to be sinking as the broader market performs dismally. Gains above $0.50 may lift traders' confidence, triggering another wave of demand, powering ADA towards $0.55 and even $0.60.
Resistance level to watch: $0.50
Support level to watch: $0.40
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