Cardano News

Cardano price analysis: ADA floats above $2.2, sideways movement to follow?

TL;DR Breakdown

  • Cardano price analysis is bullish today.
  • Support for ADA/USD is present at $2.12.
  • The closest resistance is found at $2.3.

The Cardano price analysis shows price has increased again today to the level of $2.25 at the time of writing. But despite climbing above $2 and maintaining the price level, the ADA/USD asset is unable to pass through to the level of $2.5. Nevertheless, the ADA/USD price shows stability at the present price level.

ADA/USD pair has gained a value of 2.4 percent over the last 24 hours and has gained only 0.8 percent value over the course of the last seven days due to the bearish trend earlier during the past week. The trading volume is also down by 11 percent.

ADA/USD 1-day price chart: Uncertainty follows as price oscillates in a narrow channel

The 1-day price chart for Cardano price analysis shows price has moved up, but the price function shows exhaustion towards either side of the market, as yesterday’s bearish trend was also very limited if we consider the reduction in price, and today’s bullish trend also shows low price movement.

ADA/USD 1-day price chart. Source: TradingView

The volatility is decreasing, locking the price movement in a narrow channel, as Bollinger bands show slow convergence, with the upper band at the $2.51 mark and the lower band at the $1.97 mark, the mean average of the Bollinger bands is forming at the $2.24 mark just a point below the price level. The price, though, still is above the mean line, but if it falls below the mean line of the indicator, it will be a sign of a downwards trend for the future.

The relative strength index (RSI) has mostly remained in the lower half of the neutral zone since 7th September, but moved up towards the center of the neutral zone on 1st September, and is found at the same position at 48 index. The straight horizontal movement of RSI shows less price movement as trading volume is down by 11 percent but leaves enough room for price to rally either side.

The MACD is currently bullish, as can be noted from the green color of the histogram. The bullish crossover was observed yesterday, as the bars of the histogram are still small in size, but they do indicate the bullish trend due to the upwards price movement of the last three days when the price increased significantly. However, the indicator shows less volatility for the ADA/USD pair as the price movement has been negligible since yesterday.

Cardano price analysis: Recent developments and further technical indications

The 4-hour price chart for Cardano price analysis shows the price breakup was upwards today. But during the recent hours, selling pressure has been seen coming in as the last 4-hour candle is red at the time of writing. As the Bollinger bands have taken an upwards breakout, we can expect the price to go up as well.

ADA/USD 4-hours price chart. Source: TradingView

The volatility is also decreasing on the 4-hour chart as well, with the upper Bollinger band at the $2.34 mark and the lower band at the $2.04 mark, with the average mean line at the $2.19 mark below the price level. The relative strength index (RSI) is in the upper half of the neutral zone but moving straight ahead, showing less price movement as of now.

The moving average (MA) is still below the price level, as can be seen on the charts, and if the bulls maintain the price above the MA level, it will be an indication of the ongoing bullish trend. The short-term MA10 and the exponential moving average EMA10 support the buying of ADA/USD assets along with the MA20. In contrast, the MA30 and the EMA30 support the selling option. Overall, 10 types of MAs support the buying option, and only four types of MAs support the selling options.

The oscillators, on the other hand, are mostly neutral, with eight oscillators standing neutral and do not favor any side of the market, while the Momentum oscillator supports selling of ADA assets and MACD, and the balance of power supports buying of assets. Overall a maximum of 12 technical indicators supports the buying side, and only five support the selling side, with nine technical indicators standing neutral, out of a total of 26 technical indicators available.

Cardano price analysis: Conclusion

The Cardano price analysis suggests a bullish momentum as the price has increased today, but the price movement is minimal, which shows traders are speculating around ADA//USD assets, which is the reason for low volatility and lower trading volume. We expect ADA/USD to move up today, but on a limited scale, the price may touch the $2.3 level, but surmounting this resistance level seems difficult today.

Disclaimer. The information provided is not trading advice. 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.

This post was last modified on October 3, 2021 8:13 am

Aamir Sheikh

Amir is a media, marketing and content professional working in the digital industry. A veteran in content production Amir is now an enthusiastic cryptocurrency proponent, analyst and writer.

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