- Cardano price analysis shows an increase of 37 percent in the past six days.
- The run-up to $1.373 touched a major swing high, which had created liquidity for it by trading above the level.
- ADA is likely to correct 11 percent at the $1.195 support level before another rally.
Cardano rose significantly post the decline near the lower Bollinger band. Investors, particularly large ones, will likely book profits and will pull back their purchases. Traders need to be cautious of a potential short-term decline according to Cardano price analysis.
Cardano increased 37 percent within a week. It reached the highest point it’s been in two weeks at $1.370. After a move to new highs, the market typically retraces. ADA investors should watch the market closely for this minor crash. Cardano price analysis shows critical support levels at $1.251 and $1.195 might be able to halt this correction by absorbing the selling pressure on the market.
Cardano price movement in the last 24 hours – Journey upwards begins
There is a higher probability that the swing high on July 25 will challenge as being important due to retests on June 23 and June 26.
Cardano price analysis reflects that investors should expect an 11 percent pullback from the current price of $1.351 to $1.195. This might be a good time to buy, but you need to be careful. The price has gone down. But it is likely that the price will go up and investors should buy now before the prices go higher in case they want to sell later.
When such a price action happens, the consequent bearish momentum could push Cardano’s price down to the next support level at $1.108. Bollinger Bands pointed out a lack of volatility as the price level remained close to its previous range as per Cardano price analysis.
A breakdown of this barrier will invalidate the bullish thesis for ADA and may knock it down to where it was trading before all of these investors started showing interest in its prospects. Sentiment about cryptocurrencies had returned to a more positive outlook in recent weeks.
However, Amazon’s Friday announcement of a desire to introduce Bitcoin payment options by the end of 2018 is an undeniably bullish catalyst for market sentiment.
ADA/USD 4-hour chart: Cardano well supported by bullish support underneath
The drop in price, when ADA bottomed out at $1.0073, seems more and more constructive according to Cardano price analysis.
Post the reversal from major support line, the ADA/USD pair saw a rally later. Furthermore, if ADA breaks out of its recent decline and trends upward throughout the day, it will have broken its downtrend.
The daily chart for ADA shows that the price increased during the period of time in question. The first thing to notice is the strong trend line that appears at $1.0200. This price point has proven ground in five sell-offs over the last 5 months.
Cardano price analysis conclusion: Jumping towards higher support regions
Therefore, the bulls will be hoping that this week’s gain of 30 percent is merely a sign of how good things are going to get. Cardano climbed over the 50 DMA this morning and has momentum to close today above it.
Now that it has cleared the 100 -day MA at $1.4497, the next major moving average to be cleared is the $2.00 level. Notably, the price broke out of a descending triangle at the end of May.
This is a bullish sign and should be taken as an extremely positive development. Furthermore, the Relative Strength Index is trending higher, which supports the positive momentum.
Considering the recent positive news about Cardano, traders are likely to buy more ADA. When ADA is above the descending trend line at $1.2130 and the 200 DMA at $1.1755, Bulls maintain a bullish outlook.
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.