Jonathan Morgan
Independent Analyst
- 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.
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