Analyzing Cardano Important support and resistance levels to monitor this week

Cardano (ADA) has revisited the bearish $0.43 price point, influenced by macroeconomic indicators and overall negative sentiments in the cryptocurrency market. Finbold has delved into key support and resistance levels that ADA traders should keep an eye on this week.

Since April 14, Cardano has been trading within a well-defined two-month range, fluctuating between $0.43 and $0.50. Despite a few brief deviations from this range, ADA has not managed to break out.

As a result, the $0.43 and $0.50 levels remain crucial support and resistance levels to monitor. A breakout from either of these levels, confirmed by increased volume, could lead to a more aggressive movement.

Additionally, there is significant resistance at $0.57, which previously acted as support before the downward breakout in April. Currently, Cardano is trading at $0.44, below the 30-day exponential moving average (30-EMA) of $0.46.

Analyzing on-chain data from IntoTheBlock on June 9, Finbold has identified other key support and resistance levels for Cardano. The “In/Out of the Money Around Price” metric indicates strong resistance at higher price levels than the current one. The largest volume is concentrated between $0.453 and $0.464, with an average of $0.458. Over 162,420 addresses purchased more than 3.21 billion ADA at these prices and are currently at a loss.

Conversely, there is limited volume to the downside, suggesting weaker support towards the lower end of the range for ADA. However, 134,180 addresses bought 1.59 billion ADA between $0.373 and $0.388, with an average of $0.38. This represents a potential support level if Cardano experiences weak momentum and breaks down from its range.

In summary, the key support and resistance levels to monitor for Cardano are $0.38, $0.43, $0.46, $0.50, and $0.57. The resistance levels appear stronger than the support levels, hinting at a possible downside breakout. It is important to note that cryptocurrencies are highly volatile assets, and indicators may not always be definitive.

Disclaimer: The information provided should not be construed as investment advice. Investing in cryptocurrencies carries risks, and capital is at stake.