- On Monday, Cardano (ADA) fell by 5.37%, with the bearish sentiment from the broader crypto market weighing.
- Despite a fifth consecutive day in the red, support ahead of the June 29 Vasil hard fork limited the damage.
- Key technical indicators are bearish. ADA sits below the 50-day EMA after Monday’s bearish cross.
On Monday, Cardano (ADA) fell by 5.37%. Following an 11.38% tumble on Sunday, ADA ended the day at $0.4637.
A choppy session saw ADA slide through the First Major Support Level at $0.4658 and the Second Major Support Level at $0.4416 to a morning low of $0.4358.
Finding late morning support, ADA struck a day high of $0.4978 before falling back to sub-$0.47.
The First Major Support Level at $0.4658 limited the downside late in the day.
Market conditions improved this morning, however, with ADA finding strong support. Amidst the bearish sentiment that has plagued the broader crypto market, investor sentiment towards the June 29 Vasil hard fork remains the key near term.
Crypto Investors Pick ADA on the Dip to Support a Run at $0.55
Dip buyers appear to have chosen ADA over bitcoin (BTC) and other altcoins, including Binance Coin (BNB), with investors looking ahead to the June 29 Vasil hard fork.
Investor sentiment towards Cardano and network upgrades had been bullish, delivering strong support ahead of the latest broad-based crypto sell-off.
Notably, BTC and others fell to new 2022 lows this week, while ADA steered clear of its May 12 low of $0.3919.
Anticipation of the Vasil hard fork, scheduled on June 29, continued to attract sidelined investors.
Scaling remains an issue for the crypto majors. For Cardano, the hard fork will implement features such as pipelining, which can lead to better scaling.
The other positive driver includes Cardano Improvement Proposals (CIPs). These are new features to improve the network.
ADA Price Action
At the time of writing, ADA was up 7.61% to $0.4990.
A mixed start to the day saw ADA fall to an early morning low of $0.4358 before striking a high of $0.5191.
ADA broke through the First Major Resistance Level at $0.4957 before easing back to sub-$0.50.
The First Major Support Level delivered late morning support.
ADA will need to hold above the First Major Resistance Level and avoid the $0.4658 pivot to retarget the Second Major Resistance Level at $0.5277.
ADA would need broader crypto market support to breakout from the morning high of $0.5191.
In the event of an extended rally, resistance at $0.55 would likely come into play before any pullback. The Third Major Resistance Level sits at $0.5898.
A fall through the First Major Resistance Level and the $0.4658 pivot would bring the First Major Support Level at $0.4339 into play.
Barring an extended sell-off throughout the day, ADA should avoid sub-$0.43. The Second Major Support Level sits at $0.4037.
The EMAs and the 4-hourly candlestick chart (below) send a bearish signal. At the time of writing, ADA sits below the 50-day EMA, currently at $0.5474. This morning, the 50-day EMA pulled back from the 100-day EMA. The 100-day EMA fell back from the 200-day EMA; price negative.
A move through to $0.55 levels would support a run at the 100-day EMA, currently at $0.56.