Cardano’s ADA breaks that 0.10$ resistant level - Been a long time!!
I was very delighted to find out that ADA broke its long term resistance range which was at about 0.10$ range. The reason for this is because I brought some ADA at a high price last year at about 0.09$ levels. ADA’s price could never break the 0.10$ ceiling/resistance range and for a long time I was not having profitable holdings of ADA.
And when a few days back I noticed that the price of ADA of project Cardano reached 0.13$ levels and a support was formed at about 0.11$ levels, it was clear that ADA broke it’s long term resistance level barrier and finally my ADA holdings are profitable now. Phew!!
Ada's price as of yesterday. Support formed at 0.11$ level after breaking resistant level - 0.10$. Another resistant level for ADA this year was 0.07$.
A trading lesson that I learned the hard way - So listen up!!
Last year I bought ADA at a point when there was a lot of selling pressure of the crypto currency like an idiot, and I did that because I FOMOed big time watching ADA’s price climbup and finally lost out as ADA’s price soon fell to much lower ranges.
So, a trading lesson here is to not FOMO in and buy when the price of an asset has gone up exponentially. Check if the price has reached the previous resistance level and if it is close to touching it’s resistance level, it’s a good level to sell and book a solid profit.
Buy and sell assets at their definite Support and Resistance levels
Generally, if the price of an asset fails to break a resistance range, then the asset price will fall down finding support at price points which were previous resistance levels of the asset, or it will fall back to previous price support levels, getting brought up by buyers at that price. So, keep an eye on support and resistance levels of an asset price.
Support levels are price ranges where buyers are waiting to buy the asset and resistance is the price range, sellers are looking to sell and book profits.
For ex - 0.035$ price range was a good support level to repurchase ADA last year, however there are various other previous resistance levels which provided support for ADA’s price as the price was coming down to lower ranges. 0.043$ was one such support range.
2019 ADA's price movements. Notice 0.0035$ a support point for ADA
Get into the habit of selling assets and booking profits from time to time
Remember, that to make profits you have to actually book profits by selling when the asset price has reached a high. There is a possibility that the price can break a resistance level like it did here for ADA, and when that happens generally the price will go up a while to reach a new All time high(ATH) price range. Also the resistance level that was just broken, becomes a support level for the price of an asset.
However, partial booking of profits is good practice whenever an asset’s price is edging towards it’s resistance level. Remember, that it does not matter if the price of the asset keeps going up after you have sold it and booked your profits. Be happy you booked profits, instead of risking losing your gains by not selling the asset at its generally known strong resistance level.
The fundamental reasons for ADA’s price rise
Right, I will delve on the fundamental reasons for the recent price spike of ADA in my next post. I am sure most of you following crypto news , heard about Cardano launching its mainnet soon by the end of this month (July 29th) entering the Shelley era. This is quite a milestone.
Image Source Cardano is rolling out Shelley and launching its mainnet!!
Shelley right now is getting rolled out since June and ADA holders who participated in the incentivized testnet staking since the end of last year will reap the benefits of the staking they did , as they will soon get rewards for the ADA they staked when the mainnet is launched.
Many people are buying up ADA to stake and get rewarded during August time periods and so further price rise of ADA can be expected.
I will be back to explain Cardano’s fundamental reasons for price rise next article, thanks for reading!!