Altcoins like Cardano have sustained large losses as the broader market has experienced profit-taking in recent hours. The current price of Cardano is down 33.52 percent from it’s all-time high of $3.10 on September 2. At the time of writing cardano is trading at $2.09 and has declined by 8 percent.
Cardano Price Trades in Red
Cardano is currently battling a critical level, and if it can break through the tension of this overhead barrier, Cardano prices will likely rise. As the market continues to rise, there are signals that it could be about to break out.
If the breakthrough is successful, Cardano price might surge to their next target of $2.53 or perhaps higher, depending on how strong the purchasing demand is at this point. In case the current trend continues, the next critical level might be $3.
If the price falls below $2.05, the prior breakthrough mark of $1.951 will be tested once more. This is a high-level support level that hasn’t been tried. In the medium run, if it gives way, a further drop to $1.56 is likely.
After a strong retrace, Cardano price found some support above $2, indicating that there could be further upward in the coming hours.
ADA wallets surge!
Data from Cardano data aggregator Pooltool, first published by Finbold, shows that the number of wallets staking $ADA has increased to 942,400 at the time of writing, up from 821,000 addresses on September 10.
According to the same data source, $54.07 billion in ADA has been staked over 2,931 active pools, accounting for nearly 72 percent of the cryptocurrency’s supply. The Cardano network reached a new milestone in May, when one million wallets were created on it.
What to expect from Cardano’s [ADA] price this week?
Cardano’s [ADA] indecisiveness comes at a time when the broader crypto market attempted to revive the bulls. After an impressive September, the asset went on a dramatic decline.
Over the past week, Cardano’s [ADA] losses declined to 3.96% as it traded at $1.56. The sixth-largest crypto-asset hasn’t flushed out all the yearly gains but it was almost 50% down since ATH earlier this year. Will the investors finally see a clear-cut uptrend this week?
Cardano [ADA] Technicals Look Dull
ADA’s volatility has taken a mild hit after the price broke out from the month-long descending channel pattern. Despite the bullish breakout, the price was seen consolidating, and the decline in volatility depicted that trading may continue within the range of $1.6-$1.4. A breach from this demand zone would take time.
The formation of closing green candles of Awesome Oscillator [AO] indicated a switch to a weak bullish momentum. On the other hand, the Chaikin Money Flow [CMF] is in the negative zone meaning, intense capital outflow from the coin market.
On the brighter side, the MACD is gearing up for a bullish crossover after treading on the negative side for almost a month. Relative Strength Index [RSI] is yet to retreat from the oversold region.
ADA is expected to trade in the current region for some time now. After a period of consolidation, the asset may find the necessary momentum and climb higher.
Negative Funding Rate
Lately, Cardano has seen tremendous network activity after launching the much-anticipated smart contract functionality earlier this year to steer the network to host decentralized finance [DeFi] applications.
As it heads towards the Basho phase, things are looking better for the protocol. Along the same lines, IOHK had earlier stated,
“As a decentralized permissionless blockchain, Cardano is open to anyone who wants to use it or build on it. Recent hard forks (adding native tokens and smart contract capability) have brought many new users into the Cardano ecosystem, and we have seen rapid growth (and spikes) in transaction volumes and network traffic.”
Despite ADA’s initial growth leading up to the Alonzo upgrade, the price has remained uneventful and the above analysis depicts a similar fate in the coming days.
Moreover, Cardano’s funding rate curves on most exchanges do not look optimistic either. In fact, the latest Coinglass chart demonstrated that the metric was headed down to the negative territory. This trend has been in continuation since the last week of November. A reading such as this indicates a dominant short sentiment and that traders are bearish about ADA.
Cardano Price Analysis: ADA retests $1.60 resistance again, breakout to follow?
- Cardano price analysis is bullish today.
- ADA/USD has spiked towards the $1.60 resistance again.
- Higher high already set.
Cardano price analysis is bullish today as we have seen a break above the previous consolidation area. Likely ADA/USD will continue even higher, with the next major resistance seen at $1.75.
The cryptocurrency market has seen a bearish momentum return over the last 24 hours. Bitcoin declined by 1.04 percent, while Ethereum by 2.85 percent. Meanwhile, Terra (LUNA) is the top performer, with a gain of voer 10 percent.
Cardano price movement in the last 24 hours: Cardano sets lower low, quickly moves back towards previous highs
ADA/USD traded in a range of $1.53 – $1.62, indicating substantial volatility over the last 24 hours. Trading volume has declined by 3.23 percent, totaling $1.74 billion, while the total market cap trades around $53.44 billion, ranking the coin in 6th place overall.
ADA/USD 4-hour chart: ADA currently tests previous highs
On the 4-hour chart, we can see strong bullish momentum over the last 24 hours as previous highs are getting broken.
Cardano price has seen a strong increase over the last hours, counter to the overall trend seen over the past weeks. After setting a new major swing low at $1.415 last week, ADA/USD saw quick rejection higher to the $1.60 mark.
From there, the market started to consolidate sideways for several days. After several rejections of further upside, ADA saw a clear lower low set overnight around $1.52. The market quickly reversed from there, leading to a spike above the previously formed consolidation today.
Since the Cardano price action has set a strong higher high over the past hours, we could be seeing a major trend reversal beginning. The next resistance is located at $1.75 and, if reached, would indicate the return of strong bullish momentum.
Cardano Price Analysis: Conclusion
Cardano price analysis is bullish as we have seen a strong spike above the previous highs over the last hours. Therefore, we expect ADA/USD to continue even higher later today, with the next major target at $1.75.
While waiting for Cardano to move further, see our articles on the Best Crypto Wallet 2021, Decred Wallet, and Ripple vs SEC.
What Happened To ADA Price? Is Nothing Been Built On Cardano?
The crypto space is preparing to leap long after the recent sell-offs and if following a steady approach to pull the next leg up. However, one such crypto which appears to be pretty happy and contented at its current levels is Cardano. The ADA price after a steep downfall has yet again initiated with consolidation within a narrow trend.
Today, Ethereum price surged with a notable margin and many altcoins also followed the second largest crypto. Terra(LUNA), Solana(SOL), Avalanche(AVAX), etc have been raised, but Cardno still remained within the same levels. The Cardano remained distinct without following the ETH price. And also showcases the asset behaving similar to that of a stable coin.
Amid the fresh plunge, it was believed the asset may revist the strong support levels at $1. However, the asset managed to pause the downtrend for some time and began with a healthy accumulation. The ADA price in order to register its name in the upcoming altseason needs to coil up notably and pierce through the $1.98 levels.
On the other hand, the traders may also have remained much distinct from the platform. As no notable change with the ADA price may rise the possibilities of no major developments happening on the platform. And hence Cardano price has to flip the consolidation and thrive through the local resistance at $1.8 to march towards its highs. However, the huge target still remains pretty much distant.