- Cardano (ADA) price is currently trading at a 1% gain in the past 24 hours.
- Cardano (ADA) derivatives data states that there has been an increment of 2.51% in the OI contracts against a decrement of 42% in the volume
Cardano (ADA) cryptocurrency founded in 2017 was designed to ensure that owners can participate in the operation of the network. Due to this, the people who had holdings of the particular cryptocurrency may own the right to vote on any proposed changes in the software.
Cardano’s price is currently trading at $0.2857 with a gain of 1.10% in the past 24 hours. It holds a market cap of $9.9 Billion and ranks 7th in the world of cryptocurrency. According to coinmarketcap analytics, there is a rise of more than 2% in holdings of ADA cryptocurrency over the past 1 year. As per coinglass derivatives data there has been an increment of $47.6K OI on the long side against an increment of $95.1K OI on the short side.
Cardano Price Technical Analysis
As per the analysis of the previous chart, the Cardano (ADA) price was in a declination phase for the past 3 months. The ADA coin price declined by almost 40% in June 2023 after the breakdown of important support at 0.3558. Also, the price was trading below 100 EMA which also acted as a resistance for the market. However, prices tried to sustain above the previous demand zone, thereafter, prices are looking to move slowly and steadily upwards, thus, lacking momentum.
According to the price action analysis, the price is trying to form a channel pattern commonly known as a bearish flag pattern. Although the price is moving upwards, it may be a pullback before further decline of the price. The direction of the market is looking indecisive at this point until it tries to remain in the channel.
Now that buyers are unable to counter the move as they are lacking momentum. Sellers will again look for some selling opportunities as buyers are unable to counter and break above the previous swing high. The overall trend is also favoring them and the market is also below all the EMAs which may act as a resistance if prices try to move upwards.
However, if buyers have to dominate, they must have to make an overall change in the trend at the higher timeframe.
Indicator Analysis
As per the EMA analysis, Cardano’s price is below 100 and 200 EMA. Also, the price was moving upward but got a rejection from 20 EMA. Currently, the price is trying to sustain between the bottom trendline of the channel and 20 EMA.
At the time of publishing, the RSI value is 46.47 and that of the SMA line is 44.56. RSI is headed to the upside by forming higher highs.
MACD lines have made a bullish crossover but both the lines are below the mean line. Overall, the indicators are showing a mixed reaction as the price is indecisive at the moment.
Conclusion
As per the combined analysis of price action and indicators, Cardano (ADA) price, Bulls tried to hold the lower swing and pushed the price higher. However, the price is lacking momentum and trying to form a bearish flag pattern. If bulls can close and sustain above the recent swing high, then an upside rally may be observed.
However, if buyers fail to break above the swing high, then prices may again continue to drop and create a new swing low.
Technical levels
- Support levels at $0.253 and $0.238
- Resistance levels at $0.307 and $0.355
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
