By Chris Hollingworth 
The cryptocurrency market has been abuzz with the recent resurgence of Cardano (ADA), which currently holds the position of the seventh largest cryptocurrency by market capitalization. This comeback can be attributed to its recent listing on the Huobi exchange and the introduction of additional trading pairs on Binance.
Cardano’s ADA/BTC pair has had a tumultuous journey, witnessing significant volatility in recent months. After reaching a high of 0.00009180 on January 04, the pair experienced a steep decline of 81% to 0.00001673 by March 18. Currently, the digital currency is in a phase of consolidation, with the price retracing close to 23.6% from the recent low.
In terms of technical analysis, key levels to monitor include the 38.2% and 50% Fibonacci retracement levels at 0.00004541 and 0.00005427, respectively. A sustainable move above these levels could signal the start of a new uptrend, while a prolonged period of consolidation would also be viewed positively as it could set the stage for a significant rally.
On the daily chart, Cardano is showing resilience near the 23.6% retracement level, with a consolidation phase near the overhead resistance. The bullish crossover of moving averages adds to the positive sentiment surrounding the cryptocurrency. Traders are anticipating a breakout above the resistance level, which could potentially lead to a rally towards 0.00004541.
For traders looking to capitalize on these price movements, long-term accumulation on dips towards the 50-day SMA with a stop loss at 0.00001600 could be a strategy. On the other hand, short-term traders may consider holding positions with a stop loss at 0.00003 for those who purchased at lower levels.
Fresh positions for short-term traders should be approached cautiously, with a breakout and close above 0.000035 being a potential entry point, setting a close stop loss. The initial target for such trades could be 0.000045.
Overall, the future outlook for Cardano remains intriguing as it navigates through a critical phase of consolidation and potential breakout. Traders are advised to closely monitor key technical levels and market developments to make informed trading decisions.
Please note that market data is sourced from the HitBTC exchange, and the charts used for analysis are from TradingView.
