Yesterday, the price of Cardano (ADA) fell to $1.6 in a flash crash during which the price fell from $1.7 to $1.2 and back again before stabilizing at $1.7. When the crypto markets perform these kinds of price changes, they are often associated with manipulation. While it is too early to say what caused the price to spike to $1.8 in a flash, in this post I will analyze some of the factors that may have caused the price to rise to $1.8.
Cardano (ADA) is following a similar pattern as EOS. After yesterday’s rejection, it fell hard dropping to $1.62, but recovered a bit and currently trades at $1.63. The next few days will be crucial for the coin, as it is expected to see a major breakout soon.
Summary of the situation
- Cardano (ADA) is trying to recover from yesterday’s bearish close
- The 20-day EMA has dropped from $1.71 to $1.58, indicating a growing concentration of sellers.
Cardano price analysis: Price Overview
Cardano (ADA) is trying to rebound after yesterday’s bearish close that sent the price below $1.56. Since the beginning of the week, the price of the coin has fluctuated between $1.33 and $1.94. Yesterday, after a massive rally from the daily low at $1,470, the bulls enjoyed a bounce just above the 20-day exponential moving average at $1,560. The ADA Relative Strength Index is in overbought territory after testing the neutral zone, indicating the presence of buyers.
But if the RSI dips further below the $1.50 level, there is a good chance that the near-term advantage will be on the side of the bears. The bears have been trying to push the price of the currency below $1.33 per ounce, the overall sentiment has been negative in recent days given the large number of bearish reversals. The 20-day EMA fell from $1.71 to $1.58, indicating an increasing concentration of sellers around this price point and the possibility that the upper resistance level of $1.94 will correct downward.
Cardano price movement in the last 24 hours
Cardano’s opening price on the daily chart is also a daily low and stands at $1.47. There is strong momentum among buyers trying to break above the $1.53 – $1.54 price levels. This will lead to resistance at $1.55, and to break through this, bulls will have to look for support in the broader market. Yesterday’s bullish breakout was aggressive, even though the day started at a low. As a result, the bulls strongly defended the $1.52 to $1.54 price level. If the bears manage to trigger a strong rebound from this price level, Cardano price action could consolidate towards psychological support at $1.
The currency had a daily high of $1.538 and a daily low of $1.47. Ideally, the daily range is quite moderate, indicating moderate volatility. However, it is only the beginning of the day and we can expect more buying activity at the end of the week.
Cardano4-hour price chart
The RSI remains in overbought territory. Buyers should maintain their momentum to defend current price levels and act as a catalyst for a bullish continuation above yesterday’s rejection point. This could lead to a price target of $1.94, which is closer to the $2.47 price target. At the time of writing, Cardano is trading at $1.52, close to the first major support.
Output of price analysis of the gimbal
The Cardano Foundation continues to count down the days until the launch of its smart contract platform in August. This launch is expected to drive up the price of the coin, with the potential to reach an all-time high above $3.
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