Cardano's price was driven by the persistent $ 1,40 price level in 2021, both as resistance and as support.
The Cardano price has framed pronounced levels of support and resistance which could inhibit the development of a definitive trend and, as a result, offer an ideal trading opportunity for swing traders working on a short-term trading program.
The upside is contained around the 2018 high of $ 1,40 and the support fluctuates around $ 1,00, based on various indicators.
The Cardano price awaits the confirmation of the trend as a bullish and bearish stall
The indecision and volatility that led to the sharp correction in May led the Cardano price to establish definitive support and resistance levels.
As the ADA pricing structure has developed around price levels, it has revealed a potential forecast of broad consolidation, pending an organic or external catalyst.
On the downside, Cardano's price is supported by three critical technical indicators, each of which revolves around the psychologically important $ 1,00. One of the most followed indicators, the strategically important 200-day simple moving average (SMA), indicated by the pink line in the chart below, currently stands at $ 1,03.
The moving average was an outstanding support on June 22, as the ADA tumbled from a minor head and shoulders pattern. Based on the magnitude of the rebound and the increase in volume, it appears that major investors were taking advantage of the opportunity to hoard.
A second technical indicator strengthening $ 1,00 is the 61,8% retracement level of the March 2000-May 2021 rally to $ 1,00. It was also tested on June 22, but was slightly reduced during the May 19 dive. Like the 200-day SMA, the retracement level is targeted during corrections by larger investors looking to initiate or increase positions.
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A third and equally significant technical indicator is the VWAP pegged on Jan 3 at $ 0,98. The Anchored Vwap (indicated by the purple line on the chart) ties the VWAP calculations to a specific candle chosen by the market participant. The starting bar is selected because it marks a shift in psychology, such as the breakout from a significant pattern. The Anchored VWAP line is plotted using price and volume data from that breakout to the last trading day.
Where will ADA go?
In the case of the Cardano price, the pegged price is January 3 when ADA emerged from a mug with a high-handle pattern and then grew more than 1000% to a May 16 high of $ 2,51.
The indicator was successfully tested on June 22 around $ 0,99 and during the May 19 plunge close to $ 0,92, thus strengthening its value within the designated ADA support.
On the upside, Cardano's price faces one of the most critical resistance levels in the entire cryptocurrency complex, the 2018 high of $ 1,40. The price level was fundamental in limiting the rises in February, March and April, both at the daily and intraday end.
In late May and mid-June, the level resumed an instructive role in the ADA's price action as it provided support before finally failing on June 21.