Cardano (ADA) attempting to recover from yesterday’s rejection at $1.6

TL;DR Breakdown

• Cardano (ADA) is attempting to recover from yesterday’s bearish close 
• 20-day EMA slopped from $1.71 to $1.58 suggesting increasing seller concentration 

Cardano price analysis: General price overview

Cardano (ADA) is attempting to recover from yesterday’s bearish close that saw it crush below the $1.56. The coin has been hovering between $1.33 and $1.94 since the beginning of the week. Yesterday, the bulls got rejected slightly above the 20-day exponential moving average at $1.560  after staging a massive recovery from a daily low of $1.470.  ADA’s relative strength index is lying towards the overbought region after testing the neutral zone, this suggests incoming buyers.

However, should the RSI downslope further below the $1.50 level, the likelihood of near-term advantages to the bears is high. The bears have been attempting to sink the price of the coin below $1.33, overall sentiment for the last few days has been negative given plenty of bearish reversals. The 20-day EMA slopped from $1.71 to $1.58 suggesting increasing seller concentration around that price mark and the likelihood of the $1.94 overhead resistance adjusting lower. 

Cardano price movement in the last 24-hours

The opening price of Cardano on the daily chart is also the daily low and is positioned at $1.47. There is high momentum among buyers who are attempting to break above the $1.53 – $1.54 price levels. This will bring resistance at $1.55 into play, and to break above it, the bulls ought to seek support from the broader market. Yesterday’s bullish breakout was aggressive despite starting the day at a low. Which saw the bulls strongly defend the $1.52 -$1.54 price level. If the bears manage to instigate a strong rebound from this price level,  Cardano price action might consolidate to the $1 psychological support.

The daily high of the coin is $1.538, while the daily low is $1.47. Ideally, the daily range is pretty moderate suggesting moderate volatility. However, its only the start of the day and we can expect more activity from buyers as we head towards the close of the week. 

Source: TradingView

Cardano 4-hour price chart

The RSI is still within the overbought region. Buyers should maintain momentum to defend the current price level and catalyze a bullish continuation above yesterday’s rejection point. This could usher the $1.94 price mark and bring the target of $2.47 closer home. At the time of writing, Cardano is trading at $1.52, a price near the first major support. 

Cardano price analysis conclusion

The Cardano Foundation is still counting down days towards the launch of its smart contracts platform in August. The launch is well anticipated to drive the price of the coin high and the chances of setting a near all-time high above $3.

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