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Cardano price analysis: Cardano spikes to $1.40, slow retracement incoming?

Cardano Price analysis

TL;DR Breakdown

  • ADA moved higher yesterday.
  • Resistance around $1.40 respected overnight.
  • Retracement is likely to be seen later today.

Cardano price analysis is bearish for the upcoming day as the market spiked higher yesterday and consolidated around the $1.40 mark overnight. Therefore, we can expect ADA/USD to retrace later today as the market wants to set a higher low.

Cardano price analysis: Cardano spikes to $1.40, slow retracement incoming? 1
Cryptocurrency heat map. Source: Coin360

The overall market trades with mixed results over the last 24 hour period. Bitcoin has gained 2.2 percent, while Ethereum has lost 1.5 percent. Dogecoin (DOGE) is among the best performers with a gain of percent.

Cardano price movement in the last 24 hours

ADA/USD traded in a range of $1.32 – $1.40, indicating a strong amount of volatility. Trading volume has decreased by 32.46 percent and totals $3 billion. Meanwhile, the total market cap stands at $42.4 billion, ranking cryptocurrency in 5th place overall.

ADA/USD 4-hour chart – ready to move lower again?

On the 4-hour chart, we can see the Cardano price action starting to reverse after a substantial gain yesterday.

Cardano price analysis: Cardano spikes to $1.40, retracement incoming?
ADA/USD 4-hour chart. Source: TradingView

The overall Cardano price action structure is still bearish as the market saw a strong retracement from the previous high of $1.90 over the past weeks. On the 22nd of June, ADA/USD spiked to the $1 mark, where the previous major low was set, indicating that we could see a double bottom pattern formed.

This price action development resulted in a move higher over the past days with two local higher highs set and a previous support area around $1.30-$1.35 reached. Eventually, ADA/USD reached the $1.40 mark.

Overnight, the Cardano price established a small consolidation area below the $1.40 mark, indicating that the market is likely ready to retrace some of the gains. From there, earlier today, ADA/USD started to move lower again.

Currently, the $1.30 mark holds the market from further downside. However, considering the rapid gain over the past few days, we can expect further downside over the next 24 hours. Likely support will be found around the $1.15 mark. If a higher medium-term low is established around this price area, we can expect ADA/USD to move a lot higher from there over the next week.

Cardano Price Analysis: Conclusion 

Cardano price analysis is bearish for the upcoming hours as the market looks to retrace some of yesterday`s loss. This should lead towards a new higher low established around the $1.15 mark. 

While waiting for Cardano to retrace, read our guide on DeFi advantages, Bitcoin fees, as well as what can you buy with Bitcoin.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Lapin

Lapin

Lapin is an experienced freelance Crypto and Financial market writer and analyst. He has been trading for several years and holds a bachelor’s degree in Finance.

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