2021-07-04 14:23:27

Cardano price analysis: ADA reached $1.45, prepares to retrace before further upside?

TL;DR Breakdown

  • ADA moved higher overnight.
  • Resistance at $1.45 reached.
  • Cardano is likely to retrace early next week.

Cardano price analysis is bearish for the next 24 hours as the market has reached $1.45 resistance overnight and currently prepares for another lower move. Therefore, we expect ADA/USD to retrace back to the downside early next week and test support at $1.30.

Cryptocurrency heat map. Source: Coin360

The market trades in the green over the last 24 hours. Bitcoin has increased by almost 2 percent while Ethereum 3.71 percent. Rest of the crypto market trades with similar slightly bullish results.

Cardano price movement in the last 24 hours

ADA moved in a range of $1.38 $1.44, indicating a moderate amount of volatility. 24-hour trading volume has decreased by 20 percent and stands at around $1.84 billion. The total market capitalization totals $45.65 billion, ranking the cryptocurrency in 5th place.

ADA/USD 4-hour chart – ADA tests $1.45 resistance

On the 4-hour chart, we can see the Cardano price moving to $1.45 resistance and preparing to retrace lower again as bulls are exhausted.

Cardano price analysis: ADA reached $1.45, prepares to retrace before further upside?
ADA/USD 4-hour chart. Source: TradingView

The overall Cardano price action trades within a strong bearish momentum over the past weeks. From the last major swing high, around $1.90, Cardano retraced by more than 45 percent until low was found around the $1 mark.  

However, over the last two weeks, Cardano started moving higher again, with several higher highs and lows set along the way to the $1.40 mark, where strong resistance was found. From there, ADA/USD moved sideways earlier this week until bulls built up momentum to push ADA higher again.

Yesterday the $1.40 resistance was breached, and a slightly higher high was set around $1.45. Overall this means that the Cardano price action has lost bullish momentum again, and we can expect another move lower next week.

The $1.30 support will likely prevent further downside initially, and much depends on how Cardano will reach from there. If further downside below $1.30 is seen, we can expect a much serious medium-term swing lower again over the rest of the month.

Cardano Price Analysis: Conclusion 

Cardano price analysis is bearish for the upcoming 24 hours as a slightly higher high was set earlier today, and bears prepare to take over control again. This price action development should lead to another retracement later today back towards the $1.30 support. 

While waiting for Cardano to retrace lower, read our guides on DeFi advantages, Bitcoin fees, as well as what can you buy with Bitcoin

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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