Cardano (ADA) scales the levels ahead of IOHK summit
|- Cardano adds 16% in two days to reclaim support above $0.040.
- Cardano will continue trading sideways as technical levels stay positive.
Cardano corrected higher over the last weekend adding more than 16% to its value. Over the last few weeks, Cardano has battled to stay above the key support. However, the declines towards the end of January and the first week of February have sent it spiraling $0.040, $0.038 and the key support $0.036.
The bullish wave that swept across the market over the last weekend pulled Cardano up together with the majority of the digital assets. A reversal was occurred on hitting 2019 lows of $0.03556. ADA/USD sprung up in successive bullish candles above both the 50-day Simple Moving Average (SMA) and the 100-day SMA (1-hour range). Cardano reclaimed the support at $0.04 and tested the nest resistance at $0.0430 before starting to trim the gains.
However, compared to other assets like Bitcoin (BTC) which has canceled the gains from $3,700 to the current value of $3,590. The uptrend has slowed down and Cardano is trading at $0.04119 after sliding below the trendline support. It is likely that ADA/USD will trade sideways in the near term as the Relative Strength Index (RSI) is horizontal at 54.00. Similarly, the Moving Average Convergence Divergence (MACD) is maintaining in the positive territory. In case a reversal occurs, ADA will find support at $0.040, $0.038 and the monthly low at $0.03556.
ADA/USD 2-hour chart
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