- Cardano price has shown minimal clues as to directional intentions as it continues to consolidate.
- ADA is approaching a key support level, and a break below could unravel a bearish bias.
- Despite the bearish outlook, Cardano price is guarded by a great deal of support.
Cardano price action has been uneventful, despite recovering 33% from its reaction low on June 22 when it dropped to $1.00. ADA has not shown any directional clues, therefore investors can expect the asset to consolidate further before a break out manifests.
Cardano price loses momentum as volume declines
Cardano price has struggled to make higher highs since its ADA reached its record high at $2.47 on May 16, allowing a descending trend line to form on the daily chart. Now, the cryptocurrency appears to be consolidating after its attempt to break out.
Cardano sliced through the descending trend line that has trapped ADA in a downward trajectory, suggesting that it is ready to effect the reversal of fortune.
However, Cardano price continues to be sealed under an abundance of resistance levels, as the traction has been momentary, not resulting in a sustainable superior rush higher. ADA is quickly retracing to the aforementioned descending resistance level and is losing this barrier at $1.33 as support.
Cardano is currently trading below the 38.2% Fibonacci retracement level at $1.34, which is the first sign of weakness. In addition to the bearish thesis, ADA has not closed above the 50-day Simple Moving Average (SMA) and the 100-day SMA since June 10 and June 18, respectively.
ADA/USDT daily chart
The decline in trading volume along with the price also adds credence to the pessimistic outlook, as ADA bulls are starting to lose steam. Further selling pressure could push Cardano price back to below the descending trend line and down by 6.5% to the demand barrier that starts at $1.25, coinciding with the 27.2% Fibonacci retracement level.
Although the prevailing direction of ADA appears to be sideways, should the bulls lose further momentum to the bears, Cardano price would find its strongest line of defense at the lower boundary of the demand zone at $1.15, before the possibility of retesting $1.00.
On the flip side, if the bulls manage to shift Cardano price action to the upside by closing above $1.34, ADA could be primed for a 7.5% jump to the 100-day SMA at $1.44, which coincides with the 50% Fibonacci extension level.
Speculators must note that this level could act as a strong resistance, and only a daily close above it might open up the potential for a Cardano price to rally by 17% and tag the 50-day SMA and the 61.8% Fibonacci extension level at $1.55.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Bitcoin: Retraces to around $75,000 after hitting new all-time high
Bitcoin (BTC) edges slightly down on Thursday and trades at around $74,900 after hitting a new all-time high (ATH) of $76,400 on Wednesday, buoyed by the victory of the crypto-friendly candidate Donald Trump in the US presidential election.
Ethereum price jump spurs most significant ETF inflows in six weeks
After a positive momentum in crypto markets following the outcome of the US presidential election, spot Ether exchange-traded funds (ETFs) in the United States saw their highest inflows in six weeks.
Top trending meme coins PEPE, BONK, and FLOKI achieve double-digit gains following Trump’s victory
The prices of top trending meme coins Pepe (PEPE), Bonk (BONK) and FLOKI (FLOKI) experienced double-digit gains following Trump’s victory on Wednesday. The technical outlook suggests that the three meme coins hover around key levels, and the breakout could push these coins higher.
SUI hits new all-time high fueled by Trump election win
Sui (SUI) edges down on Thursday and trades at around $2.24 after hitting a new all-time high (ATH) of $2.38 earlier in the day, buoyed by the victory of a crypto-friendly candidate, Donald Trump, in the US presidential election.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.