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Cardano Sees Sharp Fall From $3 ATH, Currently Holding $2.57 Support
ADA rose to new heights in the market this Monday as its price reached an unprecedented high of $2.95. The token had been a consistent performer since the start of August following the breach of its 50-day moving average (MA) of $1.30. A large share of these gains is based on the hype surrounding smart contracts, which are coming Cardano network in September.
However, after it nearly broke $3.00, Cardano witnessed resistance in the current price channel. As the overall crypto market, including the pioneer cryptocurrency, experienced losses, Cardano too slipped from its ATH. Yesterday, ADA retested its $2.50 support range, the same place where its Fib retracement support of $2.57 lies.
At the time of writing, Cardano is trading at its first support price of $2.57. If it fails to maintain this level, its fall could be cushioned at $2.35, followed by $2.15 (20-day MA) and $2.00.
Conversely, Cardano traders could face their resistance at $2.80, if they push the price upwards. This will be followed by $2.95 (ATH), $3.07, $3.20, and $3.42.
Cardano Continues Trade Inside Ascending Price Channel
Despite the recent retracement, Cardano continues to trade within the upward sloping price channel. After Monday’s ATH, ADA was using the 6000 SAT -- its highest against BTC -- which has since declined to 5500 SAT.
Going forward, if the token remains on a downward trajectory then the first SAT support lies at 5325. But further pullbacks could result in support levels of 5000 SAT, 4580 SAT, and 4240 SAT.
Again, if buyers push prices upwards then ADA would encounter the first resistance at 6000 SAT. This is followed by 6200 SAT, 6300 SAT, 6540 SAT, and 7000 SAT.