TL;DR Breakdown
- Cardano price analysis is bearish today.
- ADA/USD is currently trading at $1.35.
- Rejection for further upside is seen right now.
The Cardano price analysis is negative today as we anticipate another retracement following a test of $1.38 resistance, which was rejected. Next, ADA/USD will establish a higher low before breaking higher.
ADA/USD opens the session at $1.3430 after having reached a high of $1.37 during the day yesterday. The bears are in total control right now as the further upside is being canceled out by resistance seen at $1.3820, where I recommend waiting for another higher low formation to start buying ADA/USD again. However, if no buyers are waiting to buy off lower lows, I would expect price action to test support around 50% Fibonacci retracement level for a possible bullish correction towards the range resistance, which is around $1.32-$1.3340 area. Under this scenario, I anticipate an increase in volumes with strong support established just above the $1.30 key psychological level, which is also the lower limit of the symmetrical triangle breakout pattern developed on the ADA/USD 4-hour chart.
Key support sits around the 50% Fibonacci retracement level priced at $1.35, while key resistance is located at $1.3820 and then at the range resistance waiting to be tested at $1.40.
ADA/USD 4-hour chart: ADA looks to reverse?
On the 4-hour chart, we see that Cardano priced is rejecting additional upside today at $1.38, with another test of decline likely required first.
The Cardano price reached a new swing high of $1.60 last Monday, continuing its climb after another surge the previous week. A quick reversal ensued, with an initial fall of about 13 percent to the $1.38 previous support level.
The price fell further, bringing new support at $1.30 on Friday. On Thursday, the reaction to retest the $1.38 previous support as resistance was observed before another rapid test of the downside occurred on Friday.
Cardano’s price is expected to make another push lower today, likely towards the $1.38 support, after reversing at $1.30 and moving back toward the $1.38 resistance earlier in the session. ADA/USD will likely continue its decline today and establish a new low.
Cardano Price Analysis: Conclusion
Cardano’s price is bearish today, as we held the market back from rising further at $1.38. As a result, ADA/USD will most likely seek to establish another higher low and attempt a further advance from there.
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