ADA Price Analysis: Bulls Breach intraday resistance level, Downtrend Choppy Action with Low Volatility Expected

By Sunil Sharma
Published October 1, 2021 Updated October 1, 2021
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ADA Price Analysis: Bulls Breach intraday resistance level, Downtrend Choppy Action with Low Volatility Expected

By Sunil Sharma
Published October 1, 2021 Updated October 1, 2021

The dominant sell pressure triggered by a series of bearish divergence on the higher daily charts of the ADAUSDT makes ADA, the DPoS platform token attractive to intraday short sellers.

The relative strength index confirmed the downtrend after going below level-25 [daily TF].

Read on for more insights as we dive into the intraday 4HR chart, identifying, significant chart structures and key resistance and support levels.

S/R Levels 4 Hr Chart

 

Following the path of the daily time frame, the intraday 4HR chart slumped into a downtrend, which became visible as the on-chart RSI dipped by roughly 18% below the level-25 on 17 Sep ’20.

The bulls stopped the price slump in its tracks with a regular bullish divergence on 21 Sep 16:00 sending the ADA price higher. After trading within an ascending channel for a while, the bears again assumed control, forcing the price out of the channel on 27 Sep 16:00.

The intraday downtrend is currently choppy with low volatility after a price close above inside bar resistance on 28 Sep 20:00.

Traders looking to take a long position on the smart contract token [ADA] eye the more recent bearish inside bar resistance for a price breach to the upside. Short sellers, on the other hand, hope for a collapse of the $2.029 support to load up on their trades.

It’s in situations like this that bear squeezes are built.

Cardano (ADA) Intraday Levels

  • Spot rate: 2.093
  • Mid–Term Trend [H4]: Choppy and Slowing Bears
  • Volatility: Low
  • Support: $2.022 and $2.07
  • Resistance: $2.150, $2.298, and $2.459
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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Sunil Sharma
229 Articles
Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO's in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com

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