Cardano Price Analysis: ADA retraces 18 percent, reversal to follow?
- Cardano price analysis is bearish today.
- ADA/USD continued lower overnight.
- Previous resistance at $1.35 is currently tested as support.
Cardano price analysis is bearish today as we expect further downside to follow as the downside momentum is still strong. Likely, ADA/USD will break even lower and test the $1.30 support next.
The market has seen mostly bearish momentum over the last 24 hours. Bitcoin is among the top performers, with a small gain of 0.81 percent, while Ethereum has lost 1.17 percent. Meanwhile, Cardano (ADA) trades with a substantial loss of almost 5 percent.
Cardano price movement in the last 24 hours: Cardano breaks lower, tests $1.35 previous resistance
ADA/USD traded in a range of $1.37 – $1.53, indicating substantial volatility over the last 24 hours. Trading volume has declined by 20.82 percent, totaling $4 billion. Meanwhile, the total market cap trades around $47.8 billion, ranking the coin in 5th place.
ADA/USD 4-hour chart: ADA looks to break even lower?
On the 4-hour chart, we can see slight rejection from the $1.35 mark for the Cardano price, however, bearish momentum should return shortly.
Cardano price action has seen strong bullish momentum over the past weeks. After a new major swing low was set below $1.10 on the 10th of January, ADA/USD saw a strong push higher to $1.35 later last week.
The following retracement set clear higher low above $1.20 before more upside followed. Over the following days, ADA gained over 30 percent and broke past previous swing highs.
The Cardano price peaked at $1.638 yesterday, meaning a very strong higher high has been set. However, since then, bears have taken over as ADA/USD retraces. Likely we will see some more downside tested before another higher low is set from which to move higher later in the week.
Cardano Price Analysis: Conclusion
Cardano price analysis is bearish today as we saw more downside overnight after a strong rejection of upside. Therefore, ADA/USD should continue to the $1.30 mark next.
While waiting for Cardano to move further, see our articles on Coinbase Vault vs Wallet, Cardano price prediction, and crypto tax-loss harvesting.
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