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Cardano Price Analysis: ADA Down 16% Weekly Despite Smart Contracts Hardfork

Summary:
ADA/USD – Bulls Battle To Defend .382 Fib. Key Support Levels: .35, .20, .00.Key Resistance Levels: .60, .70, .80. ADA fell from near last week to spike as low as .97 (.618 Fib) during the flash crash. By the end of the week, ADA had established support at .35 (.382 Fib) and rebounded from there over the weekend. Unfortunately, ADA could not close above resistance at .80 and ended up reversing from there to head back into the .35 support, where it currently sits. A break beneath this support could potentially cause ADA to continue lower toward the 50-day MA around .20. It’s also worth noting that this takes place right as the network went through the much-anticipated launch of its smart contracts capability on the mainnet on Sunday, September 12.

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ADA/USD – Bulls Battle To Defend .382 Fib.

Key Support Levels: $2.35, $2.20, $2.00.
Key Resistance Levels: $2.60, $2.70, $2.80.

ADA fell from near $3 last week to spike as low as $1.97 (.618 Fib) during the flash crash. By the end of the week, ADA had established support at $2.35 (.382 Fib) and rebounded from there over the weekend.

Unfortunately, ADA could not close above resistance at $2.80 and ended up reversing from there to head back into the $2.35 support, where it currently sits. A break beneath this support could potentially cause ADA to continue lower toward the 50-day MA around $2.20.

It’s also worth noting that this takes place right as the network went through the much-anticipated launch of its smart contracts capability on the mainnet on Sunday, September 12.

adausd-sep14-min
ADA/USD Daily Chart. Source: TradingView.

ADA-USD Short Term Price Prediction

Looking ahead, if the sellers berak $2.35 (.382 Fib), the first support lies at $2.20 (50-day MA & .618 Fib). This is followed by $2.00 (.618 Fib), $1.80 (100-day MA), and $1.60 (200-day MA).

On the other side, the first resistance lies at $2.60. This is followed by $2.70 (20-day MA), $2.95 (1.272 Fib Extension) – $3.00, and $3.20 (1.414 Fib Extension).

The RSI has been falling since mid-August and recently crossed beneath the midline for the first time since late July. This indicates that the sellers are attempting to regain control of the market momentum.

ADA/BTC – Bears Push Beneath .236 Fib Support

Key Support Levels: 5000 SAT, 4925 SAT, 4710 SAT.
Key Resistance Levels: 5340 SAT, 5550 SAT, 5640 SAT.

Since failing to break 6000 SAT resistance at the start of September, ADA had been falling last week to establish support at 5340 SAT (.236 Fib Retracement). It held this support all through the previous week and even rebounded from there over the weekend to spike back above 6000 SAT.

Unfortunately, the bears reversed from 6000 SAT and returned to the 5340 SAT support yesterday. The support was penetrated today as ADA fell lower to head toward 5000 SAT.

adabtc-sep14-min
ADA/BTC Daily Chart. Source: TradingView.

ADA-BTC Short Term Price Prediction

Moving forward, the first support now lies at 5000 SAT. This is followed by 4925 SAT (.382 Fib), 4710 SAT (50-day MA), 4590 SAT (.5 Fib), and 4260 SAT (100-day MA).

On the other side, the first resistance lies at 5340 SAT. This is followed by 5500 SAT, 5640 SAT (20-day MA), and 6000 SAT.

The RSI also recently dipped beneath the midline for the first time since early August. This indicates that the bears are starting to gain control of the market momentum.

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