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Cardano ($ADA) revisited the bearish $0.43 price, punished by macroeconomic indicators and overall negative sentiments in the cryptocurrency market. Finbold looked for insights on key support and resistance levels $ADA traders should watch this week.
Notably, Cardano has been trading in a well-defined two-month range since April 14, from $0.43 to $0.50. During this time, $ADA has made a few brief deviations from the price range but without breaking out.
Therefore, the $0.43 and the $0.50 levels remain the most important support and resistance to watch for. A breakout, followed by confirmation with increased volume, from any of these levels would bring a more aggressive move.
However, there is still relevant resistance at $0.57, which previously worked as support before April’s breakout downwards. As of this writing, Cardano trades at $0.44 below the 30-day exponential moving average (30-EMA) at $0.46.
Cardano on-chain data for key support and resistance levels
Looking further, Finbold gathered on-chain data from IntoTheBlock on June 9, which highlights other Cardano key support and resistance levels.
In particular, the “In/Out of the Money Around Price” metric shows strong resistance at higher prices than current ones. The largest volume is within the $0.453 to $0.464 level, at an average of $0.458. 162,420 addresses purchased over 3.21 billion $ADA at these prices and are currently in losses.
This resistance level coincides with the 30-EMA of $0.46 in the daily chart.
On the other hand, there is no relevant volume to the downside, suggesting weaker support to the range’s low for $ADA. Nevertheless, 134,180 addresses purchased 1.59 billion $ADA between $0.373 and $0.388, at $0.38 on average. This represents the most likely support level if Cardano remains with weak momentum and breaks down from its range.
In conclusion, Cardano’s key support and resistance levels to watch are $0.38, $0.43, $0.46, $0.50, and $0.57. The resistance levels are more robust than the support, suggesting a downside breakout. It is important, however, to understand that cryptocurrencies are highly volatile digital assets, and indicators are not conclusive.
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