Disclaimer: The information presented does not constitute financial, investment, trading or any other type of advice and is solely the opinion of the writer.

Bitcoin [BTC] fought its way back above $20k after plodding around $19.8k the previous day, to trade at $21.1k at the time of writing. cardano [ADA] trading within a range for a little over a month now. This presented an opportunity for traders to enter the market when the price reached one of the extremes of the range. Cardano saw a jump from the $0.44 range and presented a potential buying opportunity in a lower time frame.

ADA- 1-Day Chart

Source: ADA/USDT on TradingView

On the daily timeframe, ADA had traded between the $0.44 and $0.65 support and resistance levels for nearly six weeks. The mid-range was at $0.54 and ADA was trading hands at $0.49 at the time of writing.

The mid-range represented heavy resistance to the bulls, in addition to the range highs. Therefore, the $0.54 mid-level can be used to make a profit on purchases that are lower in the charts.

Another factor that exposed the daily time frame was that the $0.488-$0.5 area acted as a resistance. The current trading session fell within this area, but had not yet been dismissed.

ADA-1 Hour Chart

Source: ADA/USDT on TradingView

The hourly time frame showed the USD 0.49 level had some significance over the past week as it was both a support and resistance to ADA. In addition, the $0.5 on the lower time frames has seen formidable resistance in recent days. During the same period, the price has formed higher lows as it pushed towards the resistance.

Ergo, the lower time-lapse bias was bullish. The two Supertrend indicators also agreed when they flashed a buy signal for ADA on the hourly chart. But where would an ideal entry point be?

Source: ADA/USDT on TradingView

The Stochastic RSI, in conjunction with the Supertrend indicator, can be used to time a lower timeframe entry. At the time of writing, the Stochastic RSI has formed a bearish crossover and moved lower. If it hits oversold territory, traders should keep a closer eye on ADA. A bullish crossover in the oversold territory as ADA remained above the Supertrend indicators on the H1 timeframe could be used to take a long position.

To support the bullish idea, we have both the RSI and AO showing bullish momentum. The RSI rose above the neutral 50 line and has remained above it. The Awesome Oscillator (AO) was also above the zero line.

At the same time, the OBV has steadily climbed higher. This suggested the presence of buying pressure behind Cardano in recent days.

Conclusion

Above the hourly time frame, the $0.54 area was marked as a strong resistance level. On the hourly timeframe, the $0.488-$0.5 area could provide traders with an opportunity to buy ADA, with a bullish target of $0.53-$0.54 to take profits. A stop-loss just below $0.478 can be set. A session that would close below USD 0.48 would break the previous higher low and reverse the structure towards bearish.



This post Cardano: Evaluating whether an upward move could be around the corner

was published first on https://ambcrypto.com/cardano-evaluating-if-a-move-upward-could-be-around-the-corner/

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