- Cardano has been hovering around the same price level after recording an all-time high of $2.4.
- ADA topples Binance Coin(BNB) from fourth place among the top cryptocurrencies.
Cardano Price Prediction: General price overview
Cardano has been hovering around the same price level after recording an all-time high of $2.4 and dropping to $1.4. Selling pressure heightened on Friday and pulled the price downwards from the 20-day EMA ($0.71). The resulting bearish reversal that stopped at $1.6 was further strengthened after the 21-day simple moving average marked across from above the 100-day SMA. Traders have lost over 40% of their investment since last week after most of them bought the high, anticipating the bullish trend to keep moving. However, we saw a group of buy-the-dip investors benefit immensely from Cardano’s sharp drops towards $0.90 and $1. However, Cardano’s performance has generally been above average for the last few days following a bloodbath that cut across cryptocurrency markets.
Bitcoin’s bottom to a 16-week low to the $30K dragged with it most of the coins. This crash has been attributed to the crackdown of cryptocurrency operations in China by government regulators; Primarily due to the fight against carbon emissions and global warming. The good news for ADA is it’s been able to topple Binance Coin(BNB) from fourth place among the top cryptocurrencies.
Cardano price movement in the past 24-hours
Cardano has been trading between an intraday range of a $1.4057 low and $1.5397. The bears seem to be overwhelming the bulls and are already validating an imminent downside that could see the altcoin retest $1. ADA’s price action also seems to be confirming a head and shoulder pattern which has already pulled broken the $1.300 support and might end up opening doors for the next bottom at $0.95. A bottom that coincides with the mid-week crash that saw Cardano touch $0.91. But still expect to see lots of buying pressure at this point.
The price is already trending along the 9-day moving average with resistance at $1.5. This resistance can be attributed to the large amount of sellers who have found a resting place around the crucial 200-day SMA, as well as a Relative Strength Index pointing towards 30.00. All both indicators add an impetus to the bearish reversal.
Cardano price action on the 4-hour chart
Candlesticks on the 4-hour chart are still red and heading downwards for the $1.2 support. Bulls seem to have weakened their ability to scale the $1.50 psychological support and the price seems to be flipping further downwards.
Following the crash of the market, most investors are turning away from market fundamentals and are becoming more focused on blockchain usability. Cardano has so much on the table to offer, having rolled out several cutting-edge partnerships and ready to roll out a smart contracts platform in August. Blockchains such as Cardano, Polkadot and Solana which provide more value to users stand high chances of driving the next bull run.