On this first AT Monday of the year 2023, we will focus on the ADA cryptocurrency of the Cardano blockchain. Our latest asset analysis, dated last August, evoked the confused situation of ADA. In the turmoil, it has taken the bearish path, pushing down numerous supports. Could this dynamic, which is still current, one day end? Today we turn to TradingView to analyze the key levels of the asset and the bias to have for this year start 2023.
A relatively powerful weekly downtrend
First of all, we can see the strength of the downward trend which has been trading on the asset since the end of 2021. This has been accentuated since last July with the impossible recovery of the EMA13 on a weekly scale, which demonstrates the strength of the sellers as well as the lack of investor interest in the asset.
Therefore, ADA has never stopped falling and is now heading towards $0.254, where the asset might react with a bounce. However, this is not the most important level. Therefore, ADA could break this support totally, which leads us to look at additional layers located at:
- $0.152, one old resistance which turned support in late 2020 before ADA exploded to the upside
- A pivot area at 0.10/0.11 dollars to which ADA has been technically reacting since 2018, both as support and as resistance. Therefore, if the price returns to this level, we should probably expect a bullish reaction.
- If all of these layers don’t hold up, the doors would open for a the asset moves back to $0.062, a previous resistance.
Is a trend reversal possible for ADA?
Now, for this second part of the analysis, let’s look at thedaily scale identify key levels in the event of a trend reversal. First of all, we understand that the trend is also bearish on this time unit. To hope for a trend reversal, ADA will first need to clear the previous peak (red circle) as well as EMA13 to hope for a breakout of the two upper EMAs. In this context, ADA could return to $0.306/0.309the former November-December support zone.
If ADA continues its bullish momentum and recapture this zone, we can add new key levels to watch:
- The resistence at $0.33 where the MA100 represented in black approaches.
- the technical level at $0.36 on which there was a price reaction
- the double technical leveland 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 particular level and prevent the asset from rising even higher.
We have come to the end of this analysis of thenative resource of the cardano blockchain. Unfortunately, given the current environment and what is being offered on prices, we maintain a bearish bias on the asset. However, this is not definitive as it is entirely possible to see an uptrend reversal if the asset manages to retake certain levels spotted on a daily scale. Always navigating the uncertainty of the markets, one must not have unreasonable objectives and evolve gradually while having good risk management.
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