Cryptocurrency trader CryptoBusy highlighted in a tweet today that Cardano’s ADA token is facing resistance around the key 0.382 Fibonacci retracement level.
CryptoBusy notes that ADA got “massively rejected” upon reaching this level, which is around $0.30 based on current prices. The 0.382 Fibonacci level is an important potential resistance point that traders watch closely when analyzing price action.
The Fibonacci sequence of numbers is commonly used in technical analysis to identify support and resistance levels. By taking key swing highs and lows and mapping the Fibonacci levels between them, traders can identify areas where the price may reverse.
CryptoBusy emphasized the importance of studying the key Fibonacci ratios of 0.382, 0.50, and 0.618 when trying to master trading knowledge. These levels correspond to the golden ratio and can often act as barriers where rallies run out of steam.
At the time of writing, Cardano’s ADA token is trading around $0.28, having fallen back after reaching as high as $0.30 recently. The 0.382 Fib level that ADA hit lines up with the $0.30 area on the charts.
With ADA appearing to be rejected at this important Fibonacci resistance, traders will be watching to see if the cryptocurrency can regain enough upside momentum to push through this barrier. If not, ADA could see further consolidation or a deeper pullback as it struggles to find buying interest at higher levels.
Going forward, the Fibonacci levels identified by CryptoBusy will be key areas to monitor as potential resistance zones for Cardano. Traders may look to exercise caution if ADA approaches these levels in any future rally attempts.
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