This first Monday AT of 2023, we will focus on the ADA cryptocurrency on the Cardano blockchain. Our latest wealth analysis, of last August, conjured up the confused state of the ADA. In the turmoil, it took the bearish path, pushing down numerous supports. Could this still ongoing dynamic eventually come to an end? Let’s go to TradingView today to analyze the asset’s key levels and the bias to be had for this beginning of 2023.
A relatively strong weekly downtrend
First of all, we can see the strength of the downtrend which has been operating on the asset since late 2021. This has been compounded by the impossible recovery of the EMA13 on a weekly basis since last July, showing the strength of sellers as well as a lack of investor interest in the asset.
Hence, ADA has never stopped falling and is now heading towards $0.254 where the asset could respond with a recovery. However, this is not the most important level. Therefore, ADA could break this support completely, which prompts us to monitor additional levels located at:
- $0.152, one old resistance which became support in late 2020 before ADA exploded higher
- A Pivot zone at $0.10/0.11 which ADA has technically reacted to since 2018, either as support or resistance. Therefore, if the price returns to this level, we should probably expect a bullish reaction.
- If all these levels didn’t hold up, the doors would be opened for one Asset back to $0.062 former resistance.
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Is a trend reversal possible for ADA?
Now, for this second part of the analysis, let us consider thedaily scale Identify key levels in the event of a trend reversal. First, let’s understand that the trend is also bearish in this unit of time. To hope for a trend reversal, ADA must first break away from the previous high (red circle) as well as the EMA13 to hope for a breakout of the top two EMAs. In this context, ADA could come back to it $0.306/0.309the former November-December support zone.
If ADA continues its bullish momentum and regains this zone, we can add new key levels to watch:
- That Resistance at $0.33 where the MA100 shown in black is converging.
- the technical level at $0.36 whereupon there was a price reaction
- the double technical levele at $0.402 and $0.426
Here are all the levels to watch daily in case of an uptrend reversal ADA. It is possible for sellers to show up at a certain level and prevent the asset from going even higher.
Here we are at the end of this analysis of thenative asset of the Cardano blockchain. Unfortunately, given the current context and what is on offer on the courses, let’s maintain a bearish bias on this asset. However, this is not definitive as it is quite possible for the uptrend to reverse if the asset manages to resume certain levels identified on a daily basis. Always navigating the uncertainties of the markets, one must not have unreasonable goals and progress step by step with good risk management.
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