Cardano defends the $1 crucial support and extends a recovery trendline

TL;DR Breakdown

•  price has been trading around $1.4 for the fourth day in a row since May 19th’s downswing
• ADA is trading just 22% against BTC
• If Bitcoin recovers, Cardano will as well surge and break above the all-time high of $2.48.

Cardano Price Prediction: General price overview

Another bearish day for Cardano(ADA) with the relative strength index pointing towards the negative territory. The price has been trading around $1.4 for the fourth day in a row since May 19th’s downswing. Buyers are willing to purchase the decline but this will only hold until the price touches below the $1 crucial support. And chances are if this happens, the downtrend line might form strong resistance preventing the price to climb in the short term.  

There appears to be an upward trendline on the 4-hour chart following a rally from $1.06 to $1.42. Most cryptocurrencies gave up to bearish weaknesses on Wednesday, and Cardano(ADA) has remained one in a few coins showing signs of strength.  The coin did slide from $2.00 but the drop isn’t big compared to what’s taking place across other markets. In fact, the coin surged in trading volume and toppled Binance coin from the top 5 most traded cryptocurrencies.  As a matter of fact, ADA is trading just 22% relative to Bitcoin and that’s the flavor of its strength. 

ADA traded on an intraday range of between the $1.06 low to a daily high of $1.485. Undergoing a positive percentage gain of 37%. Profit booking investors jumped aboard the daily chart at the critical $1 support level but this failed to have much of an effect on the technicals. 

Cardano price movement in the past 24-hours

The bulls have come out strongly to defend the $1 support and are gaining market support to prevent any further downsides in the coming week. The price did reverse from a bottom correction of $0.95 on Friday but the altcoin is ready for an uptrend. This is especially suggested by the flattening curve towards the 50-day simple moving average at $1.44. The bulls should keep strengthening the technicals and sustain the price to $1.5. Unless they want the bears to regain control and target a downswing towards the 200-day exponential moving average at $0.77. If this happens, the bulls must begin accumulating more support from the broader market so as to retest the critical support. 

(Source: Tradeview)

Cardano Price movement on the 4-hour chart

The 4-hour chart is bullish and pointing towards a solid uptrend. At the time of writing, ADA is trading at $1.48. However, a popular trader and analyst Benjamin Cowen believe Cardano’s upward trajectory is heavily dependant on the recovery of Bitcoin. If Bitcoin recovers, Cardano will as well surge and break above the all-time high of $2.48. 

(Source: Tradeview)

Cardano price prediction: Conclusion

Amidst the prevailing bear market, traders should opt for both fundamentals and an altcoin’s long-term history. Panicking will only lead to misinformed decisions such as pulling out of positions in fear of losses. Cardano for instance is on its way to massive adoption and the blockchain is yet to unlock high scalability and performance features. In the long term, Cardano (ADA) is going to pull out of the bear market and yield profits for traders that remain loyal. 

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.