Cardano Price Analysis: Can ADA Rally to $1 After Downside?
Cardano price analysis: The price of ADA decreased by 4.5% in the last 24 hours to trade around $0.351 during European business hours on Monday. The price drop invalidates a previous bullish pattern on the Cardano chart. If Bitcoin behaves, ADA bulls may save the price before incurring further downside.
Cardano Price Analysis: Major Indicators Point to More Short-Term Bleeding
ADA price was bullish last week as market participants anticipated a break out from a falling wedge. However, following Bitcoin’s downward turn, the ADA breakout was invalidated. Instead, the asset’s price broke to the downside, going as low as $0.3165.
There was some reprieve after the price crash as ADA rose 18% from the crash bottom to test $0.37, a support-turned-resistance. The ADA price action is trending below the 50-day and 200-day simple moving averages, as it struggles to break above this new resistance zone.
The ADA relative strength index (RSI 14) is 7 points above the oversold area. At 37 and below the RSI moving average (MA), ADA is in a precarious position as further selling could push into the oversold area notorious for high price volatility.
If Cardano survives this Bitcoin onslaught on the markets, ADA price may rally 43% back to $0.62. Key resistance points to look out for on the way up include $0.46, $0.54, and $0.60. On the flip side, if the bears prevail, Cardano may drop by 27% to $0.24, the strongest support level since $0.45. Key support levels to watch out for include $0.336 and $0.28.
Despite what the charts say, Coinalyze data shows the ADA Aggregated LONG/SHORT ratio is at 2.35, with 70% of traders Long and 30% Short. This is an indicator that market participants remain optimistic about ADA’s price performance in the long run and see these low prices as discounts.
Cardano Continues to Build Amid Crypto Downturn
The Cardano development team continues to build the network ecosystem, paying little attention to price fluctuations. One of the most notable developments is Chang Hardfork which will take place in a few weeks. The hard fork will unlock voting rights for ADA holders and also bring governance to the Cardano blockchain.
This is every benefit that the Chang hardfork has for Cardano
1. Unlocks governance
2. Burns genesis keys
3. Give more utility to ADA
4. Puts Cardano in hands of holders
5. Introduces dReps and CC
6. Builds a constitution for the chain
7. Further decentralizes chain— Dawson Allen (@ddawsoncrypto) July 5, 2024
Dawson Allen, a crypto researcher, goes into details about what the Chang hardfork brings to the table on his YouTube channel. Additionally, Cardano is revolutionizing the Nairobi Stock Exchange (NSE) with real-world assets.
Bottom Line
The Cardano price prediction indicates a bearish trend, suggesting ADA may face further downward pressure in the short term. However, this decline could potentially set the stage for a future price reversal as the market seeks a new support level before attempting to rebound.
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