Highlights
The cryptocurrency market slumped in the news wake of Tesla suspending vehicle purchases using Bitcoin. Cardano (ADA) remains on a historic ride, surging to fresh all-time highs of $2.04 on May 13. With a present market valuation of $62.2 billion and $11.8 billion in trade volume over the last 24 hours, Cardano has reclaimed 4th spot in cryptocurrency ranking by market capitalization, now ahead of Tether, Dogecoin, and others. At the time of writing, ADA was exchanging hands at $1.92, up by 14.20% in the last 24 hours and 20.22% Weekly. Cardano defies the market slump in what many classify as a surprising move. During early Thursday trading, Tesla announced it will no longer accept Bitcoin (BTC) for purchases due to the rate of energy consumption when mining cryptocurrencies. Bitcoin and the majority of Altcoins plunged severely to trade in red as of press time.
Key Levels
Resistance Levels: $2.70, $2.50, $2.20
Support Levels: $1.40, $1.35, $1.30
ADA/USD Daily ChartCardano (ADA) was trading in a small range since the week’s start. The pair entered a consolidation period after attaining highs of $1.89 on May 9, thus demonstrating the almost equal force of bulls and bears. ADA edged higher in the early Thursday session and surpassed the previous yearly high at $1.89 to reach fresh all-time highs of $2.04. Technical indicators, especially the RSI advancing in the bullish territory may suggest that the upside momentum has not yet allayed, signaling to further increase in price.
Beyond the latest all-time highs of $2.04, the next levels of resistance maybe the $2.5 and $3.0. However, the ADA/USD pair is more likely to trade sideways except in the case of major fundamental events. On the downside, the $1.40 level should act as immediate support ahead of the MA 50 ($1.32) to prevent a fall beneath $1.
ADA/USD 4-Hour ChartADA started a strong increase after hitting support at today’s low of $1.47. The price surmounted the MA 50 barrier at $1.67 to trade at all-time highs of $2.04. ADA is returning lower due to the resistance above this level.
If the declines extend, bearish traders may want to target the $1.83 and the $1.75 barriers ahead of the MA 50 ($1.67). A decline below the MA 50 may stall around the $1.53 and $1.47 support levels.
Should ADA price reverse to trade higher, buyers would like to see a closing price above the $2.04 high to increase exposure in the market. Such a strength may face resistance next at $2.50, where any break higher would open the door for the tops around $3 and $4. Summarizing, ADA/USD outlook remains neutral to bullish. A break below $1.83 will reinforce the neutral outlook while a climb past $2.04 will resume the next leg of the uptrend.
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