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Cardano Price Analysis: ADA retraces after a spike above resistance, the $2.2 mark currently holds

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  • Cardano price analysis is bearish today.
  • ADA/USD saw a brief spike above $2.30 resistance.
  • Further downside to establish higher low likely to follow.

Cardano price analysis is bearish today as we expect more downside to follow after a strong rally ended yesterday with a move to $2.378. Therefore, more retracement is likely needed before a higher low can be established from which to attempt another rally.

Cardano Price Analysis: ADA retraces after a spike above resistance, the $2.2 mark currently holds  1
Cryptocurrency heat map. Source: Coin360

The cryptocurrency market saw a bearish momentum return over the last 24 hours. Bitcoin lost 0.27 percent, while Ethereum 0.21 percent. Meanwhile, Loopring (LRC) is the top performer, with over 50 percent gain.

Cardano price movement in the last 24 hours: Cardano peaks at $2.37 after a strong rally yesterday

ADA/USD traded in a range of $2.17 – $2.38, indicating substantial volatility over the last 24 hours. Trading volume has increased by 8.8 percent and totals $6.335 billion. Meanwhile, the total market cap trades around $74.4 billion, ranking the coin in 4th place overall.

ADA/USD 4-hour chart: ADA to pause before more retracement?

On the 4-hour chart, we can see the Cardano price finding some support at $2.2 after a strong retracement earlier, indicating some upside could follow over the next hours.

Cardano Price Analysis: ADA retraces after a spike above resistance, the $2.2 mark currently holds
ADA/USD 4-hour chart. Source: TradingView

After a strong move lower at the end of October, Cardano price action established support around $1.90 by the end of the month. After several days of consolidation,  the first attempt to move higher followed on 3rd November.

Selling pressure quickly returned, returning ADA/USD towards the previous support area. Further consolidation followed at the end of last week until another rally began on Monday.

This time, the Cardano price action broke past the previous high as strong buying pressure continued yesterday. Eventually, ADA/USD peaked at $2.37, leading to the current retracement that will likely continue over the next few days.

Cardano Price Analysis: Conclusion 

Cardano price analysis is bearish for today as we expect further retracement after a strong rally over the past days. Therefore, the current support at $2.2 will likely be broken as ADA/USD tests further downside.

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