Key resistance and support levels ahead for Cardano, Ethereum, and Hedera Hashgraph.
Cardano’s daily Chikou Span continues to trade, consistently, above the candlesticks. When I wrote yesterday’s article (June 2nd, 2021), the initial price action on the Thursday candlestick open was looking fairly bearish, but bulls have clearly rallied Cardano higher to a price level necessary to maintain the bullish condition of the Chikou Span above the candlesticks. Today’s price action shows the high was stopped against the 88.6 Fibonacci Retracement level. Over the next three trading days, we could see Cardano trade between 1.76 and 1.89 before experiencing a key test of the strong bar hight at 2.0445.
In the short term, I continue to look at the 0.84 to 0.94 level as a primary support zone. That value area has been tested heavily since March and is positioned perfectly to match the average major retracement level that Cardano typically experiences from major highs (-60%). Another level to watch is around 1.25 for both the high volume node as support and the psychological level that it represents.
Above: Ethereum (ETHUSD) Chart
Ethereum continues its slow trudge higher and into the Cloud and is approaching two key resistance levels. The two resistance levels are the Kijun-Sen at 3053.65 and the prior swing high at 2930.47. At the time of writing this article, Ethereum has been rejected higher against the 2930.47 level and the top of the current high volume node, indicating a possible double top forming. Additionally, the RSI is at 50 and near the first overbought level at 55 – which is an important resistance zone to test before any confirmed and certain move lower could continue.
Hedera Hashgraph (HBARUSD)
Above: Hedera Hashgraph (HBARUSD) Chart
I don’t think I’ve done any analysis over Hedera before (or if I have, I’ve forgotten). I am currently long on Hedera and I even though I have a short term bearish outlook for the entire cryptocurrency market, I can see Hedera experiencing a somewhat divergent move regardless of any broader sell-off – not a big chance, but a change nonetheless. Hederea has had a very long period of some slightly downtrending consolidation since March 15th, 2021. The %B, RSI, and Composite Index have all moved into neutral territory while nearly all of the components in Ichimoku system are within the same value area. This is the definition of a squeeze. Hedera is not an overly popular cryptocurrency and it’s volume is very, very light. Those kinds of conditions equal an amazing trading opportunity for me. The current technical on Hedera’s daily chart along with the low trading volume equate to an an absolutely explosive move in the near future. I like adding to long above 0.35 where price would then be above the Tenkan-Sen, Kijun-Sen, Senkou Span A, and Senkou Span B, and the Chikou Span would be above the candlesticks. The initial profit target I am looking at it is in the 0.98 to 1.12 value area.