- The ADA price has fallen by over -30% in the last week
- ADA price has bounced off the long-term trendline
- ADA price has to win back $ 2.51 to run out of hot water
Cardano Price (ADA) has had an amazing run over the past month as prices have increased over 200% from $ 1.00 to $ 3.00. This price movement has largely been attributed to the expectation that the smart contract features will go live on the Cardano blockchain after nearly 4 years of hard work. To everyone’s surprise, the beta version of this feature went live last week and could only process 1 transaction per block.
This was a lot less than expected, but the founder assured everyone that the beta version and improvements are coming. Overall, it seems that after such a sharp surge in the last month or so, ADA has finally reset itself.
If we look at the price action over the past few weeks, we can see ADA start going sideways after nearly hitting $ 3.00. The price formed a rising wedge and today ADA broke all the way down to the bottom of that wedge. After losing $ 2.79 support, ADA tumbled to a multi-week low. Prices fell by almost -30% within a few hours.
The lower wick bounced off the long-term trend as the 4-hour candle managed to close above the medium-term trend that has been respected for several weeks. At the time of writing, ADA is trying to break above its main resistance zone of $ 2.51.
Cardano Price Analysis: ADA / USDT 4-Hour Chart
If ADA manages to break through and hold this major resistance, the price will then shoot to levels near $ 2.65, which is where the next major resistance is. ADA has refused to close a candle under its prime support of $ 2.37. In the event that the bears continue their dominance and ADA is pulled below this level of support, trouble may be imminent. Currently, ADA has bounced back significantly from its 200MA, which held the price for over a month. Any drop below these two levels will cause ADA to return to the low $ 2.00 area.
- If we look at the stochastic RSI, we can see that the strength has come back completely just within the oversold area. At the time of writing, ADA is bouncing back from this oversold region towards a trendline that has been respected for almost a week. Strength needs to break completely through and hold this trendline for ADA to be confirmed in a bullish revival.
- Looking at the MACD, we can see that the MA has fallen to a multi-month low. This is a great sign that the tables have been cleaned and as soon as the histogram is ticking green again, expect more buoyancy.
ADA intraday analysis
- Spot price: $ 2.51
- Trend: bearish
- Volatility: Medium
- Support: $ 2.37
- Resistance: $ 2.51
Disclaimer of liability
The content presented may contain the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication assumes no responsibility for your personal financial loss.
About the author
Domenic Fiore loves the financial markets. He decided to skip the college route to pursue entrepreneurship. He saw the vision of becoming an entrepreneur and wanted to be successful from a young age. Domenic has owned and operated an auto retail business since he was 16 and was part of two CBD companies through 2018 and 2019, seeing 10x returns in a few months. Then he realized there was a lot of potential and went headlong into learning what he could. He developed a great passion for technical analysis and knew this was his path to financial freedom. Over the past 4 years, Domenic has shared his analysis with many groups and received amazing feedback. Shortly thereafter, he wanted to help spread the word in the retail industry and help others to be successful.