- Long wicks across ADA sessions suggest lots of market indecision.
- ADA trading with 50-day SMA for the second week.
- Sustaining the price level above today’s high $1.6 raises hopes for a 30% bull run.
Cardano (ADA) 4-hour trading chart is indicating long wicks on both green and red sessions. This is not a complete indicator of indecision across the market, but the wicks suggest an imbalance between sellers and buyers. However, the buyers have already exhausted their momentum following a heavy bloodbath across the broader market. A slight momentum had begun taking shape on the 1-hour chart with the formation of three white soldiers from a price low of $1.53 to a high of $1.57 during that particular session. This continuation was however short-lived after the sellers rejected the uptrend at $1.56. Caused a pullback on the price, which was followed by a moment of indecision and boom – all red signals.
The price action of Cardano(ADA) is no different from the majority of the altcoins on the broader market. But ADA buyers seem persistent to stabilize the price above two demand zones at $1.48 and $1.56. The likelihood of upholding this price level is low particularly in a bear market but successfully sustaining it will translate to a high rally of atleast 30%. The critical support is still at $1, a 1-month low at $1.03, and a 3-month low at $0.95. Bulls are playing their part to prevent revisiting the three price levels as they all signify a danger zone; that could trigger a break below $0.90.
Cardano price movement on the 24-hour chart
The 24-hour chart is trading at a Head and Shoulder (H & S) pattern with a neckline through $1.55, which is acting as the resistance for the current price action. At this point, the bears could cause a dip and breach the prevailing support near $1.52. However, the coin has traded within this support and the 50-day simple moving average (SMA) for at least 4-days now.
Cardano’s ability to uphold and sustain almost the same moving average for over 7-days could be the result of receiving massive institutional inflows estimated at $10 million. In fact, this lifted the value of Cardano’s investment products to $24 million and made the altcoin the top recipient of institutional inflows.
Cardano 1-hour price chart
There are signs of a retracement on the 1-hour chart with Cardano heading for $1.53. At the time of writing, the coin is trading at $1.5534 within a bearish reversal. The coin formed a low at $1.53 on the 1-hour chart, which was rejected at a nearby closing price. However, the coin seems headed for the same low ($1.53 and $1.52) after buyers got rejected at $1.56.
Cardano price prediction: Conclusion
The current price action is bearish and it would be wise for traders to take any positions with great caution. Cardano as well as most of the other cryptocurrencies are facing imbalances and there is a lot of indecision taking place. However, one could bet on Cardano’s Alonzo test for the upcoming launch of smart contracts in June. Pundits hope the launch of smart contracts will drive ADA to an all-time high.