ADA Technical Analysis: Trading Above the Fibonacci Pivot Support Level of $1.31

Cardano (ADA) focuses on creating a more transparent, secure, and fair society. Also, the token ADA is designed to ensure that owners of this token can participate in the operation of the network. Owners can also have voting rights on the platform. Let us look at the technical analysis for ADA.

Past Performance

On July 02, 2021, ADA opened at $1.33. As of July 08, 2021, the closing price of ADA was $1.33. Thus, in the past week, the ADA price has not been very volatile and has not given any strong movement. In the last 24 hours, ADA has traded between $1.29 – $1.38.

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Day Ahead And Tomorrow

At the time of writing, ADA is trading at $1.33. The price is down by 3.31%  from the opening price of $1.38. Thus, indicating high selling pressure in the market, and forming a bearish candle for the day.

On the daily chart, the MACD and signal lines are below the zero range. Moreover, we can see a bearish crossover by the MACD line over the Signal line. Thus, the overall market momentum seems bearish, and we can expect the ADA price to fall for a day or so.

However, both the lines have extremely rallied from the zero rangers, this is a sign of caution. Therefore, if buying pressure takes over the selling pressure, we might witness a clear breakout on the upside. Then, the price can test the resistance at $1.45.

The RSI on the daily chart is near to the equilibrium. It is at 45.09%. It has fallen from the 53% mark. Which has acted as a resistance in the past. Thus, it indicates that the selling pressure is mounting up in the market, and is taking over the buying pressure. Hence, for the rest of the day, we can expect the price to fall, until the RSI sustains at the support level.

ADA Technical Analysis

ADA is trading above the Fibonacci pivot support level of $1.31. Which has acted as strong support. We can expect a retest at this pivot level, however, if the selling pressure remains the same, the price might break the support to fall more. Here, an opportunity for a short position arises.

The price has tested and fallen from the FIB retracement level of $1.38. If the price rises above this FIB extension level in some time, this implies that the price uptrend is strong. In that case, the price upswing is likely to continue tomorrow as well. Then, traders can go long.