Cardano has seen diminished momentum over the past month. The price is reachable [between $0.156 to $0.262] for more than a month. With the launch of the mainnet, total ADA stakes have now reached 12.49 billion, aka $ 1.74 billion with 31,000 delegates. The foundations of ADA look strong with the successful launch of the mainnet.
Cardano 1-day chart
ADAUSD TradingView
From the chart, Cardano is reachable and needs an enormous volume to break out of the resistance at $ 0.156. Cardano support of lower steps is the 50-DMA [yellow] trading support at $ 0.125. If needed, another support at $ 0.1205 is available.
The reach price action seems to be thanks to active rejection at the 0.5-Fibonacci level at $ 0.156. Hence, breaking this would be Bullish for Cardano.
Looking at OBV and the price, there is a clear formation of an exaggerated bullish divergence. Hence, a long position here could be an appropriate trade to take. Admission at $ 0.1373 seems feasible with a big gap between this and the stop-loss at $ 0.1108 would be the best game.
Considering the wicks that the said support have been constantly testing at $ 0.1205, setting the stop-loss below this level would be the best way to go. The current position of ADA is an accumulation zone before the current continues.
Based on the above entry and stop-loss, the take-profit is as the target level for ADA at the 0.382-Fibonacci level at $ 0.2625, which is a massive gain of 88.58%.
The only kink in this prediction is the clear formation of the second bottom in the OBV indicator [on-balance volume]. If the second floor sees a good bounce, then entry at above levels would be perfect.
