Cardano Price Analysis: Can ADA Rally to $1 After Downside?

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As an experienced analyst, I’ve closely monitored the Cardano (ADA) market over the past few days, and based on current trends and technical indicators, it appears that ADA is experiencing short-term bleeding. The recent price decrease of 4.5% within the last 24 hours, which brought the price down to around $0.351 during European business hours on Monday, invalidated a previously bullish pattern on the Cardano chart.

Analysis of Cardano‘s price: In the past 24 hours, the cost of ADA dipped by approximately 4.5%, trading near $0.351 during European business hours on Monday. This decline dismantles a formerly bullish trend depicted on the Cardano price chart. If Bitcoin remains stable, ADA buyers may be able to prevent any additional price declines.

Cardano Price Analysis: Major Indicators Point to More Short-Term Bleeding 

Cardano Price Analysis: Can ADA Rally to $1 After Downside?

Last week, the crypto market saw optimism towards ADA as traders predicted a price surge from a contracting trend formation called a falling wedge. However, this bullish outlook was thwarted after Bitcoin experienced a significant decline. Consequently, ADA’s anticipated breakout failed, and instead, its value dropped to reach a low of $0.3165.

After the price drop, ADA experienced some relief as it surged by 18% to reach $0.37, a level that was previously a support but has now turned into a resistance. However, the current price trend for ADA is below both its 50-day and 200-day simple moving averages, making it challenging for the asset to break above this new resistance barrier.

The 14-day Relative Strength Index (RSI) for ADA is currently 7 points above the threshold that marks an oversold condition. With the RSI value sitting at 37, which is below its moving average, ADA is in a vulnerable position. Any additional selling could potentially drive the price further into the oversold region, renowned for heightened market instability and volatility.

As an analyst, I would interpret the potential price action of Cardano (ADA) based on current market conditions. If Bitcoin’s market dominance weakens, allowing altcoins like ADA some breathing room, the price could surge by approximately 43%, reaching a target of $0.62. Notable resistance levels to keep an eye on during this potential rally include $0.46, $0.54, and $0.60.

According to Coinalyze’s data analysis, despite the conflicting information from charts, the ADA market’s Long/Short ratio stands at 2.35. This signifies that a significant 70% of traders have taken long positions, while only 30% are in short positions. This trend implies that investors maintain a bullish outlook for ADA’s future price movement and view the current prices as attractive buying opportunities.

Cardano Continues to Build Amid Crypto Downturn

The Cardano team persists in expanding the network infrastructure, unperturbed by price changes. Notably, the Chang Hardfork is upcoming within a few weeks. This significant update grants voting privileges to ADA owners and ushers in governance for the Cardano blockchain.

This is every benefit that the Chang hardfork has for Cardano

As a researcher, I would describe these actions as follows:

— Dawson Allen (@ddawsoncrypto) July 5, 2024

As a crypto analysis expert, I’d like to share some insights about the Chang hardfork from Dawson Allen’s perspective on his YouTube channel. Meanwhile, Cardano is making significant strides in collaborating with the Nairobi Stock Exchange (NSE) to introduce real-world assets into its blockchain system.

Bottom Line

Based on current trends, the cost forecast for Cardano points towards a bearish outlook, implying ADA could experience more downward pressure in the near future. Yet, this drop might pave the way for a subsequent price reversal as the market strives to find a new foundation before attempting another uptick.

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2024-07-08 11:17