- Cardano price is a bit shaky after a weekend rebound, but gains are paired back on Monday.
- The recent dip looks nice for a buy of ADA around $1.31.
- A fan-formation shows a very sensible price reaction and confirms more upside.
Cardano price was among the victims this Monday morning in the sell-off that flooded cryptocurrency markets. Big names like Bitcoin and Ethereum trended higher during the weekend, but they all paired gains and looked for support around Friday's levels.
Cardano price may look heavy, but nothing has changed to risk-on mood
Investors must have had a perfect weekend watching their cryptocurrency portfolio increase in value. The feeling on Monday morning, however, must have undercut their euphoric feeling from Sunday evening. This weekend it looked like cryptocurrencies were out of the woods after a few weeks of heavy selling and the long road to what looked like recovery.
But no need to panic just yet.
A closer look at Cardano price action shows that it is respecting a fan technical play. The 1/1 trend line was very well supported on July 1, with buyers pushing ADA price toward $1.50.
We get confirmation that this fan is being well respected as we see hours and days before the ½ fan line and the ⅓ fan line reflected in the wigs of the candles. Even the ⅛ fan is confirming the trend, which is a technical indicator to be aware of.
Looking forward, this means that some further downside is possible for now, but the 1/1 fan line should be respected around $1.33. If that level breaks, Cardano price has the $1.30 psychological level and the $1.28 triple bottom from this weekend as additional support.
ADA/USD 4 hour chart
The rejection at $1.50 is standard. It is a fundamental psychological level and, for buyers, an excellent place to take some profit. But if the sell-off continues on this US holiday, look for Cardano price to test around $1.20, which should fall in place with the 2/1 fan line.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.