Cardano (ADA) is bouncing back from a 30% drop from an all-time high, it had set on the 27th of February. The coin kicked off March with strong momentum and a few signs of a full recovery.
ADA is currently trading at $1.12 against the US Dollar, the bulls are persistent to bring the coin back on track. And any time, the market should anticipate hitting $2.
Cardano (ADA) opened the daily chart at $1.12. Consolidated a slight percentage gain of 0.11%, and finally attained a high of $1.20. So far, the daily low stands at $1.11. The digital asset has been playing nearly within the same price range after shedding over 25%, following the “Mary Hard Fork.”
In fact, the hardfork saw the digital asset drop from 3rd to 4th position on the top 10 leading cryptocurrencies. Cardano got replaced by Tether (USDT); but if the target of $2 is anything to go by, ADA is going to regain its glory by mid-March.
The bears are waging a strong pullback against the coin and mounting lots of selling pressure. Cardano dropped over 10.14% between yesterday and today. It turns out the drop is signaling bearish weaknesses after the coin’s gradual upswing in February. Also, the bearish patterns could be heels after ADA’s remarkable attainment of an all-time high, early last week.
Before news of the last hard fork, Cardano’s price had been trending between the $1.24 and $1.34 price range. The announcement turned out to pull the price downwards towards $1.2. A pullback could result in further drops below the $1.01 support base.
The 12-hour chart has a TD sequential Indicator which suggests Cardano (ADA) might show a bullish turning point in the short term. This is also an indication of a “buy signal” despite a prevailing selling pressure across altcoin markets. During press time, the ADA/USD price stands at $1.12. The coin has shed 7.07% in the daily chart. The bulls should remain intact around the current support to sustain an upward momentum or prevent further declines. The bulls are supposed to defend the $1.01 support level and back the coin against the two key resistance levels of $1.26 and $1.32.
It’s worth mentioning the TD sequential indicator is present on the 4-hour chart. Hence the possibility of more demand; which will drive the price of ADA higher. There is a declining channel on the 4-hour chart at which Cardano (ADA) has a percentage change of 0.44. The price fell from $1.14 to $1.12. A position where the coin seems to be stuck for the past few hours. An upward correction was rejected by a resistance barrier between $1.08 and $1.26. Traders ought to be aware of this price range since a slight plunge, might encourage further declines.
The bulls have most of their hopes on a few support levels in the event of a downswing. One such support is around the 0.382 Fibonacci retracement level of the upward price correction of $0.43 to $1.48 (the $1.08 support). The chances of the bears breaking below this support are lower. In the event of a decline, ADA has another support along the 20-day Exponential Moving Average (EMA) of $1.06.
The market anticipates the bulls will maintain the price of ADA/USD above the 0.618 Fibonacci retracement level at $0.83 and the 0.5 Fibonacci retracement level at $0.965.
What is your take on the price direction of Cardano (ADA)? Will the coin break above the $1.32 resistance level?
This post was last modified on March 8, 2021 7:08 am
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