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Cardano price analysis: ADA recovers 6 percent as price nears $1.40 resistance

Polygon price analysis

TL;DR Breakdown

  • Cardano price rose more than 6 percent on the day’s trade with trading volume upping 5 percent
  • Price looks to consolidate momentum towards the $1.40 resistance
  • Bullish trend to be confirmed if price holds above $1.31

Cardano price analysis for the day shows price recovering from two consecutive lowly weeks to record a 6 percent increase. Price rose as high as $1.41 over the last 24 hours, with trading volume upping over 6 percent to highlight positive buyers valuation for the token. ADA had been subject to prevailing downtrends over the past two weeks as price failed to consolidate any positive momentum. The trend currently forming may also be short-term, as sell offs could be triggered as price reaches its crucial 50-day exponential moving average (EMA).

The larger cryptocurrency market showed recoveries with major tokens over the past 24 hours, as Bitcoin rose 3 percent to go back above the $50,000 mark. Ethereum consolidated above $4,000 with a 3 percent increase, whereas major Altcoins also showed increments led by Cardano and Polkadot, both rising 6 percent each. Litecoin rose 3 percent to $160.91, Dogecoin 2 percent to $0.163 and Solana increased 4 percent to sit at $174.61.

Cardano price analysis: ADA recovers 6 percent as price nears $1.40 resistance 1
Cardano price analysis: Cryptocurrency heat map. Source: Coin360

ADA/USD 24-hour chart: Price touches EMAs but RSI predicts bearish outlook

The 24-hour chart for Cardano price analysis shows mixed technical indicators. Price can be seen rising after a series of dips and touching the 50-day EMA for the first time in 2 weeks. However, the Relative Strength Index (RSI) value of 38.42 shows an undervalued status in the market. At current trend, Cardano price may find support at $1.35 and $1.30 Simple Moving Averages (SMAs) and further sell offs could take price towards July and June lows of $1.25 and $1.20, respectively. The Moving Average Convergence Divergence (MACD) line also sits well-below the neutral zone below the 0.00 mark, confirming a bearish outlook.

Cardano price analysis: ADA recovers 6 percent as price nears $1.40 resistance 2
Cardano price analysis: 24-hour chart. Source: Trading View

ADA/USD 4-hour chart: Short-term trade shows positive market valuation

The 4-hour chart for the ADA/USD trade pair highlights the newfound upward movement for price. The RSI value of 54.61 shows a healthily valued market status, making the next few trading sessions crucial in terms of price consolidation. After crossing the crucial 4-hour EMAs, price sits between the top two Bollinger bands curves, suggesting of further movement upwards. Price will look to cross the $1.40 mark over the coming sessions, after which the next resistance point will be set at $1.45 and $1.47 at the 38.2% Fibonacci retracement level.

Cardano price analysis: ADA recovers 6 percent as price nears $1.40 resistance 3
Cardano price analysis: 4-hour chart. Source: Trading View

Cardano price analysis: Conclusion

Cardano price can be seen moving upwards after a significant period on the sidelines. Positive buyer interest can be highlighted with the increasing trading volume, but the 24-hour RSI presents a bearish picture, along with other technical indicators. Over the short-term, price will look to move towards $1.40, where sell offs may be triggered. Any movement below $1.30 may invalidate the bullish thesis, with the 4-month low of $1.18 still also a possibility.

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.

Razi Khan

Razi Khan

A Master's graduate in Renewable Energy Systems from England, UK, Razi is a tech-enthusiast. He's served as a content specialist for BlockPublisher in the US and has been an avid member of the crypto space as a journalist, trader, investor and analyst since 2018.

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