It’s a weird day in the cryptocurrency market. The best performer today in the top 10 is Bitcoin, it’s up by 2.60% in the last 24-hours, for a start. Then most of the top coins are trading in red number for the 24 hours. Single digit red numbers, mind you but red nevertheless which doesn’t seem to fit the pattern we’ve seen over the last few days.
But let’s focus on ADA, the cryptocurrency created by the Cardano project. It’s lost 4.9% over the last 24 hours but is up by 3.7% during the week.
ADA started the day trading sideways for the most part, but it had three fluctuations that would have been profitable for those riding the shortest-term waves. Then, at about 19:10 UTC, it started to really go down. It retraced at around 21:00, and then it plummeted. That’s where we are as we prepare this article for publishing.
The signs are thoroughly mixed as the market is of 95% buyers, with green trading volumes being higher than red ones (when there are any volumes to speak about), but the trend remains negative so the bulls are there, but they’re not making a difference.
Technical analysis for 60 mins, one day and one month
At press time, the price is at $0.086784.
We’re above the first support level but below the pivot point for hourly trading, which means that you should be selling for the next 60 minutes. If the price goes as low as 0.084795 the market could find support and turn around, but this is a very transient indicator, so let’s see what’s going on on the daily and monthly scenarios.
The daily technical analysis says we are below the first support level (0.087945), which is why the price seems to be bouncing back. If it doesn’t break that level on its way up, then watch out for the third support level of 0.080913. Yes, we’re below the second one as well.
In the analysis for 24-hour trading, the light is red but not too much. The buying signals are active according to most technical indicators and most mobile averages, but that’s just because, being above the third support level only, the technical analysis belief is that the market just can’t go any lower quickly. But as it happens with most “rules” in technical analysis, that’s not written in stone.
The monthly analysis, which tends to be more influential in terms of market behavior, is neutral, but more encouraging. The price rests above the pivot point, $0.078, and resistance is far away, at 0,092751, which gives ADA a lot of room for growth.
Today is not a day in which you should expect to profit much from short-term trades. There are too many mixed signals, and the market seems just as confused as the charts. This isn’t Cardano’s problem; it’s how it’s been for most of the crypto market all day long.
Our last remark goes to Bollinger Bands. They’ve kept roughly the same width since 21:00 UTC. If the price recovers, they will widen up which will be the signal of higher volatility coming into the market, which is not a bad thing as things stand, because without some degree of volatility, then Cardano (ADA) will be stuck trading sideways for quite some time or it will keep losing value.
If you’re an ADA trader with interest in other assets, today is the day to explore the possibilities in those other assets. Not a good day to rely solely on Cardano’s ADA.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.