- Cardano price analysis is bullish today.
- ADA/USD close to $2 support after overnight drop.
- Reaction is likely to follow over the next hours.
Cardano price analysis is bullish today as we expect the $2 mark to prevent further downside, meaning a higher low will be set. Therefore, ADA/USD should see a reversal over the second half of the day and move higher after the test of local support.
The cryptocurrency market traded in the red over the last 24 hours. The market leader, Bitcoin, lost 2.47 percent, while Ethereum lost 2.1 percent. The rest of the top altcoins have seen even worse results, with a drop of over 5 percent.
Cardano price movement in the last 24 hours: Cardano retraces again after a brief rally above $2.10
ADA/USD traded in a range of $2.01 – $2.13, indicating mild volatility over the last 24 hours. Trading volume has declined by 44.64 percent and totals $3.33 billion, while the total market cap trades around $67.3 billion, ranking the coin in 6th place overall.
ADA/USD 4-hour chart: ADA looking to test $2 support?
On the 4-hour chart, we can see a strong decline for the Cardano price this morning as a higher low will likely be set before more upside can follow.
Cardano price action saw consolidation below the $2 mark for most of November. After a strong drop to $1.80 at the end of October, the price stabilized above $1.90. A brief test of upside followed on the 3rd of November, resulting in another drop lower.
However, at the beginning of this week, ADA/USD saw a strong bullish momentum return. Cardano quickly broke past the previous highs, peaking at $2.375 on Tuesday. An equally strong reversal followed, resulting in a spike to $1.95 the day after.
Since then, the Cardano price action rallied back above $2.10 before moving for another test of the downside earlier today. Currently, the $2 mark is the closest support, with a higher low likely set around it. From there, we expect ADA/USD to move higher over the weekend.
Cardano Price Analysis: Conclusion
Cardano price analysis is bullish today as we expect the $2 mark to hold, meaning a higher low will be set from which to move higher over the weekend. Therefore, ADA/USD will likely see further downside over the next hours as the $2 support is not yet reached before the bullish momentum picks up again.