Cardano (ADA) has left its parabolic rise (blue) after hitting its ATH at just under $3.00 and is currently testing our first support area. Currently we are at around 2.58 USD.
ADA has been in a strong overbought area in the RSI and we have had a lot of bearish signs. However, it is always difficult to find the perfect exit in such steep rises as there is a lot of FOMO (fear-of-missing-out) involved.
Should ADA not manage to hold this support, the next strong support will only start in the area of USD 2.00.
Update Chart Analysis 09/2021
Cardano is also taking a breather. After having been above USD 3.10 in the meantime, we briefly fell into the USD 2.00 area. At the moment we are at around 2.60 USD.
Interestingly, Cardano had already slumped a bit before Bitcoin’s correction. Here, the reasons were obvious. We had massive bearish divergences on all time frames. An RSI that was overbought and of course FOMO (fear-of-missing-out).
Right now we have resistance in the $2.80 – $2.95 range. If Cardano wants to rise to new heights, we will definitely have to break through this. Our support at around 2.00 USD has held for now. If we test it again, we have to make sure that it holds. Otherwise, the next support is at approx. 1.70 USD.