The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. All investment and trading activities carry inherent risks; conduct your own thorough research before making any decisions.
Market data is sourced from the HitBTC exchange.
Cardano (ADA) has re-established its position as the seventh largest cryptocurrency by market capitalization. This resurgence follows its recent listing on the Huobi exchange and the introduction of additional trading pairs on the Binance exchange.
#Binance Adds ADA/BNB and ADA/USDT Trading Pairshttps://t.co/GmTUh2TsN1 pic.twitter.com/HDy7JxezGV
— Binance (@binance) April 17, 2018
Furthermore, traders are expressing optimism regarding Cardano’s fundamental prospects, with many speculating that it could evolve into a significant competitor against Ethereum. 💡
Key Takeaways
- Cardano (ADA) has climbed to become the seventh-largest cryptocurrency by market capitalization.
- Recent listings on Huobi and new trading pairs on Binance have fueled ADA’s comeback.
- Traders are optimistic about ADA’s potential to challenge Ethereum’s market dominance.
- Technical analysis suggests key resistance and support levels for ADA/BTC.
ADA/BTC Weekly Chart Analysis
The charts reveal that the ADA/BTC pair has experienced a relatively short but highly volatile trading history. After reaching a low of 0.00000254 on November 2nd of the previous year, it surged to an intraday high of 0.00009180 on January 4th of the current year, marking an impressive 3514% return in approximately two months. ⚡
Following this peak, the cryptocurrency entered a downtrend, depreciating by 81% from its high to 0.00001673 on March 18th. ✅
What Investors Can Expect
For the past five weeks, ADA has been in a pullback phase, nearing the 23.6% Fibonacci retracement level of its decline from 0.00009180 to 0.00001673. 📊
A rapid ‘V’ shaped recovery is considered unlikely after such a significant drop. Investors who bought at higher price points may choose to exit their positions once their breakeven levels are approached. 📍
Similarly, short-term traders who entered near the recent lows are expected to take profits on any rallies. 📌
Key resistance levels to monitor on the upside are the 38.2% Fibonacci retracement at 0.00004541 and the 50% retracement at 0.00005427. 💡
The commencement of a new uptrend could be confirmed following a subsequent decline towards the recent lows. Sideways consolidation over several weeks would also be a positive indicator, as a longer period spent forming a base often precedes a more substantial rally. ⚡
ADA/BTC Daily Chart Analysis
The daily chart illustrates that the current pullback has found support near the 23.6% retracement levels. Cardano has maintained its position near the overhead resistance for the past seven days without significant downward movement, which is a positive signal. The bullish crossover of moving averages is also noteworthy. ✅
It is anticipated that bulls will attempt to break through the overhead resistance in the coming days. A successful breakout could lead to a rally towards 0.00004541. 📊
Conversely, a failure to break out might prompt traders who bought at lower levels to liquidate their positions, potentially causing a price dip. 📌
The 20-day Exponential Moving Average (EMA) will serve as the initial support level. A break below this could lead to a decline towards the 50-day Simple Moving Average (SMA). 💡
Trading Strategies for ADA/BTC
For long-term traders, accumulating positions on pullbacks towards the 50-day SMA, with a stop-loss set at 0.00001600, is a viable strategy. Should prices sustain below the March 18th low of 0.00001673, potential downside targets include 0.00000965 and 0.00000560. The primary target for this strategy is 0.000054 and higher. 📍
Short-term traders who have acquired ADA at lower levels are advised to hold their positions, maintaining a stop-loss at 0.00003. ⚡
For new short-term positions, consider entering only after a confirmed breakout and close (UTC) above 0.000035, with a tight stop-loss. The initial target for these positions would be 0.000045. 📌
Fundfa Insight
The recent performance of Cardano (ADA) highlights its potential as a significant player in the cryptocurrency market, driven by exchange listings and positive trader sentiment. Technical analysis suggests key levels to watch for potential trading opportunities, emphasizing the importance of risk management through stop-losses and strategic entry points.