1. Market Overview
Cardano (ADA) is currently trading around $0.774, up about 2% in the last 24 hours, with trading volume reaching $1.5 billion USD. This recovery is occurring in the context of a broader cryptocurrency market that is also trending upwards, particularly after Bitcoin surpassed the $97,000 mark.
2. Technical Analysis
Golden Cross: Recently, ADA formed a 'Golden Cross' pattern, when the 50-day moving average crossed above the 200-day moving average, indicating a strong bullish signal.
RSI Indicator: The current RSI is around 55, indicating that the market is neither overbought nor oversold, creating favorable conditions for the uptrend to continue.
Resistance and Support:
Resistance: The level of $0.80 is currently an important resistance level. If ADA surpasses this level, the next target could be $0.85.
Support: The level of $0.74 acts as a strong support level. Maintaining this level will reinforce the current uptrend.
3. Proposed Trading Strategy
Long Position:
Entry Point: $0.770
Take Profit Target (TP1): $0.800
Take Profit Target (TP2): $0.850
Stop Loss (SL): $0.740
Short Position:
Entry Point: $0.800
Take Profit Target (TP1): $0.770
Stop Loss (SL): $0.820
4. Conclusion
Cardano is showing positive signals with a Golden Cross pattern and increased trading volume. Breaking through the resistance level of $0.80 will open up opportunities for ADA to move towards $0.85. However, investors need to closely monitor support and resistance levels to adjust their trading strategies accordingly.
Trade Now: https://www.binance.com/en/trade/ADA_USDT