- ADA rallied yesterday.
- ADA/USD established a high of around $1.2 overnight.
- Cardano is set to decline further.
Cardano price analysis is bearish for the rest of the week as a clear swing high was set over the last 24 hours. Since ADA/USD rejected further upside, we can expect bears to take over later today and start pushing towards further downside again.
The overall market trades with slightly bullish price action over the last 24 hours. Bitcoin is up by 1.84 percent, while Ethereum is around 4.3 percent. Meanwhile, Stellar (XLM) is among the best performers, with a 12.5 percent increase.
Cardano price movement in the last 24 hours: Cardano rallies to $1.2 resistance
ADA/USD traded in a range of $1.14 – $1.22, indicating a moderate amount of volatility seen over the last 24 hours. Trading volume has increased by 2.6 percent, totaling $1.84 billion, while the market capitalization trades around $37.45 billion, ranking the cryptocurrency in 5th place overall.
ADA/USD 4-hour chart: ADA ready to reverse?
On the 4-hour chart, we can see the Cardano price rejecting further upside, indicating that bears are ready to push the market lower again.
The overall Cardano price action still trades with a heavily bearish price action momentum as a clear lower swing high was set around the $1.5 mark at the beginning of July. From there, ADA/USD declined by more than 30 percent until another retest of the $1 mark was set on Tuesday.
This price action structure indicates that bears are still in control, however, since further downside still can not be set, ADA/USD could be trading in an increasingly tighter range over the past week. Therefore, the current rally to $1.2 could potentially be the first sign of a reversal as a slightly higher high was set.
The upcoming decline for Cardano might be an important signal for the overall market as a new higher low could be set above the $1 mark. In this case, we could see ADA/USD start to reverse in a much more serious way later this month. Alternatively, if the $1 mark fails to hold, we can expect a lot more downside over the following weeks.
Cardano Price Analysis: Conclusion
Cardano price analysis indicates bearish momentum to follow later today as further upside was rejected overnight, and a base from which to push lower has been established. Therefore, we expect ADA/USD to drop further later this week and try to reach the $1 major support mark again.
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