Technical Analysis for ADAUSD for 22nd August 2022
Cardano Drops 24% from August Highs, Primary Support at $0.45
Past Performance of ADA
Like the rest of the crypto market, Cardano is printing lower lows. There are hints of strength in lower time frames following sharp liquidation at the tail end of last week. However, because prices are within the August 19 bear engulfing candlestick, sellers are still in a commanding position. From the daily chart, ADA is down 24 percent and trending at a critical multi-week support level.
Cardano Technical Analysis
ADAUSDT formation swings bearish after the sell-off of August 19. A notable observation is that the bar is wide-ranging and has relatively high trading volumes. However, depending on how prices react in the days ahead, it could signal the beginning of another leg down towards $0.37, or worse, or be climactic, marking the end of a short-term bear run. While ADA sellers may double down on every expansion in lower time frames, any close above August 19 highs and $0.50 may reinforce bulls' belief as they prepare for a retest of August 2022 highs at $0.57. Conversely, a dump below $0.45 may draw more sellers targeting $0.37 in a bear continuation pattern of April and May 2022.
What to Expect from ADA
Fundamental developments may prop up ADA prices. However, the reaction at $0.45 and $0.37, on the lower end, could shape the trajectory of Cardano prices. Any expansion above $0.50 will be a relief for optimistic buyers targeting a retest of August 2022 highs.
Resistance level to watch: $0.50
Support level to watch: $0.45
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