Technical Analysis of Cardano (ADA) on Binance (ADA/USDT)
1. Overall Trend:
• Daily Frame: According to TradingView analysis, ADA shows mixed signals. There is a bearish pattern (such as a 'negative lightning' pattern) on the daily frame, indicating potential selling pressure if key resistance levels are not broken. However, the price is moving within a defined range, with the possibility of a rebound if support levels are maintained.
• Weekly Frame: Technical analysis on the weekly frame shows a strong buy signal, with the price increasing by 22.97% over the past week and 62.43% over the past month, reflecting strong upward momentum in the medium term.
2. Support and Resistance Levels:
• Support Levels:
◦ First Support: Around 0.90 USD (Critical support level mentioned in CoinGecko reports). If broken, the price may retreat to 0.62 USD (previous support level).
◦ Second Support: Around 0.4476 USD (Previous low mentioned in TradingView analyses).
• Resistance Levels:
◦ First Resistance: Around 1.094 USD (Proposed support line for a bounce).
◦ Second Resistance: Around 1.308 USD (Potential bullish target if the first resistance is broken).
◦ Main Resistance: Around 1.33 USD (Previous peak level in 2017-2018).
3. Technical Indicators:
• Moving Averages:
◦ On the daily frame: The price is below the 21-day moving average (WEMA), indicating a temporary weakness in upward momentum.
◦ On the weekly frame: Strong buy signal with a bullish crossover between the moving averages (MA10 and MA20), supporting the likelihood of continued upward trend.
• Relative Strength Index (RSI): No specific value for RSI is mentioned, but analyses suggest that ADA may be in a neutral to bullish area on the weekly frame, meaning there is room for upward movement without reaching overbought territory.
• Trading Volume: The 24-hour trading volume has increased by 5.10% compared to the previous day, indicating increased market activity and potential momentum.
4. Market Analysis:
• Whale Activity: There is an increase in whale activity on Cardano, reaching its highest level in several months, which may support positive price movement.
• Critical Level: ADA has recently approached a critical support level at 0.90 USD. If the price fails to maintain this level, it may see a decline of 6.5% to lower levels.
Trading Recommendations for this week (August 19-25, 2025):
Based on technical analysis and current market dynamics:
1 Buy Strategy:
◦ Entry Point: If the price bounces from the support level at 0.90 USD or shows a strong daily close above 1.094 USD, buying can be considered targeting the following goals:
▪ First Target: 1.308 USD (Proposed Resistance).
▪ Second Target: 1.50 USD (Long-term target if upward momentum continues).
◦ Stop Loss: Set a stop loss below the support level at 0.85 USD to reduce risk.
◦ Time Frame: This strategy is suitable for traders on the daily or weekly frame.
2 Sell/Wait Strategy:
◦ If the price fails to maintain the support level at 0.90 USD with a daily close below this level, it may be better to wait or consider selling/opening short positions targeting the next support level at 0.62 USD.
◦ Stop Loss: Set a stop loss above 1.094 USD if you are trading short positions.
3 Risk Management:
◦ Due to cryptocurrency market volatility (ADA's volatility is estimated at about 6.73% daily), it is advised to use a small trading volume (1-2% of capital) and set clear stop loss limits.
◦ Avoid relying solely on technical analysis; keep up with news related to Cardano, such as project updates or general market changes.
4 Bullish Scenario:
◦ If the price breaks the resistance level at 1.094 USD with increased trading volume, a strong upward trend may begin. The first target is 1.308 USD, with potential to reach 1.50 USD if momentum continues.
5 Bearish Scenario:
◦ If the price breaks the support level at 0.90 USD with a daily close, it may retreat to 0.62 USD or lower. In this case, it is preferable to wait for clear rebound signals before entering buy trades.
Additional Notes:
• Market News: Cardano has recently seen an increase in whale activity, which may support upward momentum. However, any negative developments in the overall market (such as a drop in Bitcoin) could affect ADA.
• Risks: Cryptocurrency markets are highly volatile, so all available information should be studied before making trading decisions.
• General Recommendation: Use platforms like Binance or TradingView to monitor charts in real-time and confirm technical signals before entering any trades.
If you need more detailed analysis on a specific timeframe (like 4 hours or 30 minutes) or have additional questions, please let me know! I can also assist you in setting up a customized trading strategy based on your goals.
