Cardano (ADA) Looks To Recover After Sliding To $0.43


Cardano (ADA) price witnessed an extended extension with a descending angle formed on June 27, when the price was at $0.52. Since then, ADA has gradually retreated to find support at $0.44.

However, ADA may slowly return to the green, as its price rose throughout the weekend session after falling to $0.43 on Friday.

Cardano is a third-generation decentralized Proof of Stake blockchain platform that aims to be a more efficient option for PoW networks.

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The token is at a crossroads at this point, and the price may move in either direction. If the bulls can call for sufficient strength, a rebound to $0.64 is possible, but the support area around $0.42 to $0.44 may provide further impetus for the coin.

In the coming days, the general trend is likely to benefit sellers. Unless buyers intervene at the immediate support level, ADA could experience a prolonged decline before a strong recovery.

Bear market pushes ADA to double 7-day

As of this writing, ADA is trading at $0.4507, down 9.5% in the past seven days, according to data from Coingecko, Sunday.

The broader crypto market continues to show bearish signs, chief among them being Bitcoin’s inability to cross the $20,000 threshold. BTC, the most sought-after cryptocurrency, is currently trading at $19,105, down 11.2% in the past week, according to Coingecko statistics.

ADA total market cap at $15.6 billion on the weekend chart | Source: TradingView.com

In contrast, Ethereum fell more than 2 percent, staying just above the $1,000 threshold. Ripple and Dogecoin remained unchanged at $0.44 and $0.05, respectively, while Solana fell 2% to $33.04. Litecoin fell 2% to $50.57, while Polkadot fell to $6.70.

ADA ranks 8th on CoinMarketCap’s chart of the largest cryptocurrencies by market capitalization. The coin saw a 24-hour decline of 3.80%, reaching $0.4514. Hence, its total market capitalization is $15.37 billion.

Fill up the hands of the bulls to raise Cardano

If the bulls are able to reclaim the 21-day simple moving average, which is now at $0.50, the downtrend may be invalidated early. If the bulls can reclaim that level, they could advance to $1.20, an increase of 170 percent over Cardano’s current price.

As evidenced by the RSI’s high of 41.40, ADA is likely to advance for the time being.

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If buyers can consolidate above the current trend over the next 24 to 48 hours, ADA will aim for the 50 day exponential moving average (EMA).

For a trend reversal to occur, the ADA must close above the upper bound of the current pattern over the next 24 hours. On the other hand, a drop to $0.42 could undermine the optimistic logic.

Featured image from Cryptoknowmics, chart from TradingView.com



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