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Cardano Price Analysis: Cardano eyeing $1.65 after bear’s hijacked $1.5 support

Uniswap price analysis

TL;DR Breakdown

  • Cardano opened the daily chart at a price of $1.5435 
  • A breakout above the 61.8% FIB extension on the 1-hour chart 
  • Cardano underwent a 25% downswing between May and June. 

Cardano price analysis: General price overview

Cardano’s price action is lying towards the middle Bollinger band but has not yet touched it.The price broke above the lower band on the 4-hour chart indicating receding bearish pressure. ADA’s RSI has also turned back from the oversold region and is currently trending within bullish territory. Ever since the beginning of the day, the bands have been moderately contracting, suggesting moderate volatility. 

The daily trading chart is generally bearish, this pattern began at the start of the weekend and has extended into the beginning of the week. Cardano turned down from the 50-day simple moving average and the 20-day exponential moving average at $1.5404 and $1.5385 respectively. Bulls are strongly defending support at $1.5, while the bears are applying more pressure to subdue the support and create a pullback below the 79% FIB retracement level at $1.24. 

This could neutralize a lot of the bullish momentum and open the possibility of a downswing on the 2-day chart. If there is an increase in seller volume, the price of ADA could take a 10 – 15 percent dip to the higher lows of the psychological resistance at $1.05. 

Cardano price movement on the 24-hour chart: Major bearish trendline 

Cardano opened the daily chart at a price of $1.5435 and activated a long red candle in the early morning hours. The Relative Strength Index was trending within an overbought region before it turned to 34 and the price action underwent a pullback to the daily low of $1.5270. This dip represents a 4.4 percent loss from yesterday’s daily high. Last week, a Cardano price analysis mentioned the price was likely to undergo a swing low to the 50% FIB retracement level at $1.50  – a profit booking region for investors. This has come true as a result of the weekend bearish wave and adjusted the target for bulls from the previous swing high at $1.71, to somewhere around $1.6338. 

Cardano
Source: TradingView

Cardano 1-hour price chart:  Positive signs of a breakout

At the time of writing, Cardano’s price has touched the upper band and is heading for a breakout above the moving average. Suggesting the market is heading towards an overbought region on the next 2-4 hour session. As such, sellers are attempting to take the market hostage by applying bearish pressure at the middle line. Cardano is trading at $1.5415 and there is an extended breakout above the 61.8% FIB extension. 

Cardano Price Analysis: Cardano eyeing $1.65 after bear’s hijacked $1.5 support 1
Source: TradingView

Cardano price analysis conclusion: Investors ought to long their positions

Cardano underwent a 25% downswing between May and June. This could be mild for new traders who are not used to the volatility of the market, particularly given it came in the heat of a bull run. The only solution is for investors to long their positions and envision to hodling as opposed to purchasing dips. However, the volatility across Cardano’s market is moderate for today’s chart and has been high over the past week indicating day traders can trade effortlessly.

Richard Adrian

Richard Adrian

Richard is a versatile fintech analyst with a deep understanding of blockchain domains. As much as technology fascinates him, he finds the intersection of both technology and finance mind-blowing. The firm belief that fintech will drive the future has brought him to the crossroads of Fintech discoveries and transmission of immutable data to a wider audience - Cryptopolitan.

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