A short summary on Cardano (ADA)
Updated
ADA is seen as a overvalued piece of vaporware which has had one of the most insane bull runs of 2017. The correction it has seen so far should not shock anyone as the surge was definitely unsustainable and I would not be surprised to see it fall some more.
Now onto the technical analysis, as of now ADA is resting on top of the 0.786 fib region and slightly below the resistance level in the 2500 - 2700 satoshi region. ADA is in a very clear downtrend as illustrated by the descending diagonal trend line and it has failed to break the trend line 5 times. If ADA breaks below the 0.786 fib region and has continued daily candle closes underneath the 0.786 fib region the next support level is between the 1000 and 1400 satoshi region which is illustrated by the grey rectangle. I personally think it is a very critical moment for ADA as it is resting just below the trend line and just above the Fibonacci level, if the Fibonacci level holds for an extended period of time ADA will have broken the downward trend line and there can be upside potential.
Now onto the technical analysis, as of now ADA is resting on top of the 0.786 fib region and slightly below the resistance level in the 2500 - 2700 satoshi region. ADA is in a very clear downtrend as illustrated by the descending diagonal trend line and it has failed to break the trend line 5 times. If ADA breaks below the 0.786 fib region and has continued daily candle closes underneath the 0.786 fib region the next support level is between the 1000 and 1400 satoshi region which is illustrated by the grey rectangle. I personally think it is a very critical moment for ADA as it is resting just below the trend line and just above the Fibonacci level, if the Fibonacci level holds for an extended period of time ADA will have broken the downward trend line and there can be upside potential.
Note
So far so good, if anyone is holding short positions between 1300 to 1700 is a good area to close your shorts or take some significant profits
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.