- Cardano price is likely to retest $2.00 as bearish technical conditions weigh on any bullish fundamental reports.
- Cardano remains inside the Cloud on the daily chart, representing an extraordinarily choppy and volatile environment for both buyers and sellers.
- It may take until October 9th before Cardano could see a return to bullish price action.
Cardano price whipsaws buyers and sellers during the weekend trade session. News regarding Cardano's partnerships with Dish Network and Chainlink generated a substantial spike higher, but bulls failed to rally beyond some key resistance levels.
Cardano price spikes on Dish Network partnership but fails to rally as sellers push Cardano lower by -12.7% from the weekend highs
Cardano price experienced a significant bullish spike over the weekend, easily outperforming much of the selling pressure that affected the broader cryptocurrency market. However, the Kijun-Sen at $2.49 and the top of the Cloud (Senkou Span A) at $2.46 acted as resistance and halted further upside momentum. Despite creating a new weekly high, sellers pushed ADA from $2.46 to $2.14.
The trading range for Cardano price is likely to be constricted until a clear directional move is established. ADA primary near-term resistance is the 38.2% Fibonacci retracement at $2.28, while the primary support level is the daily Tenkan-Sen at $2.18. While the resistance above at $2.50 remains, the immediate support below $2.18 is the 50% Fibonacci retracement and Senkou Span B at $2.06 – this is a challenging area for sellers to close below.
ADA/USD Daily Ichimoku Chart
If Cardano price maintains a consolidation zone between $2.00 and $2.40, a bullish breakout near October 11th is likely. However, the threshold the Chikou Span must reach to convert Cardano to another bullish expansion phase falls considerably from $2.97 today to $2.51 on October 11th. If buyers can push Cardano to the $3.00 level, any near-term bearish scenario will be invalidated.
Buyers and sellers should also watch for the consolidation in the Relative Strength Index for a breakout above 50 (bullish) or below 40 (bearish) as a warning of future trend direction.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.