Cardano Price Prediction: Was ADA's post-FOMC euphoric rally a bull trap?


  • Cardano price got rejected from the upper boundary of a newly formed descending parallel channel.
  • The 14.62% FOMC-driven rally allowed traders to short ADA.
  • Cardano price bleeding may continue as long as it stays under the Ichimoku cloud.

Cardano price moved 14.62% following the FOMC meeting on Wednesday, which resulted in an interest rate hike of 75 basis points. A euphoric rally also engulfed the entire market, with the total market capitalization reclaiming the $1 trillion mark.

The increase in cryptocurrency prices immediately after interest rate hikes has become a norm over the last few months. However, crypto assets tend to feel pressure after a few weeks as investors make capital adjustments.

What's next for cardano price?

The smart contracts token is doddering marginally above $0.50 at the time of writing. The long Exponential Moving Average (EMA) provides support after ADA tagged the descending channel's upper boundary at the end of the Asian session on Thursday.

The down leg is bound to stretch further, especially if Cardano price cracks the buyer congestions at $0.50. As the Relative Strength Index (RSI) forms a bearish divergence below the moving average, odds will flip in favor of an extended correction.

cardano price

ADA/USD six-hour chart

Several support areas are in line to cushion buyers at the confluence formed by the short EMA and the channel's middle boundary. If push comes to shove, investors should acclimatize to Cardano price, exploring downhill levels at $0.45 and $0.42, respectively.

Are investors preparing to Sell the news?

Some investors booked early profits as Cardano price surged 14.62% to $0.52. Akash Girimath, an analyst with FXStreet, recently said that ADA was forming a bearish divergence which could lead to increased short positions.

The retracement will likely continue until Cardano price finds a solid footing, aided by the euphoria surrounding the Vasil hard fork, which will bring major upgrades to the blockchain, and is expected before August. According to Cointelegraph, who quoted TradingShort, the token could plunge 20%.

"Based on 1D RSI terms, we also seem to be on the third (3) and final leg below the collapse."

"So if ADA holders want to avoid this, they need to see the price break above the 1D MA50 and sustain trading above it for a week at least. Otherwise, completing a -93% drop from the top is possible at around 0.200," TradingShot added.

cardano price

ADA/USD daily chart

The upcoming Vasil hard fork was initially scheduled for release on June 29, but due to technical issues, the launch was delayed. Cardano is yet to announce another release date; however, the team had earlier mentioned that the hard fork would happen in the last week of July.


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


Recommended Content

Editors’ Picks

Bitcoin: Retraces to around $75,000 after hitting new all-time high

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.

More Bitcoin News
Ethereum price jump spurs most significant ETF inflows in six weeks

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.

More Ethereum News
Top trending meme coins PEPE, BONK, and FLOKI achieve double-digit gains following Trump’s victory

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.

More Crypto News
SUI hits new all-time high fueled by Trump election win

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.

More SUI News
Bitcoin: New all-time high at $78,900 looks feasible

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.

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP