Cardano price analysis: ADA continues to swiftly retrace, tests $0.46 support

Cardano price analysis is bullish today as we have seen a strong push higher and retrace that looks to set a clear higher local low. Therefore, we expect ETH/USD to reverse soon and look to test further upside.

Cryptocurrency heat map. Source: Coin360

The market has traded in the green over the last 24 hours. Bitcoin gained 4.32 percent, while Ethereum 0.33 percent. The rest of the top altcoins have traded with similar results of low volatility.

Cardano price movement in the last 24 hours: Cardano spikes higher, retraces to set higher low

ADA/USD traded in a range of $0.4619 to $0.4909, indicating mild volatility over the last 24 hours. Trading volume has increased by 43.11 percent, totaling $847.55 million, while the total market cap trades around $15.72 billion, ranking the coin in 8th place overall.

ADA/USD 4-hour chart: ADA ready to continue higher?

On the 4-hour chart, we can see rejection for further downside at the $0.46 mark, which should result in a reversal overnight and another push higher over the weekend. Once that is done, we expect ADA/USD to tagret the $0.51 mark next.

ADA/USD 4-hour chart. Source: TradingView

Cardano price action has seen an upsurge over the past days after almost a week-long consolidation above the $0.44 previous support. After initial tests of upside, ADA/USD set a slightly higher low during the middle of the week before pushing higher again.

A new high was reached at $0.495, with rejection seen immediately after. From there, ADA retraced substantially, indicating that bulls are exhausted for now.

Earlier today, support at $0.46 was reached, with a clear reaction higher, indicating that any further downside is unlikely. Therefore, we assume that ADA/USD will soon reverse and start to head higher over the weekend. Once the momentum gets going, we expect the next target to the upside to be the $0.51 resistance.

Cardano price analysis: Conclusion 

Cardano price analysis is bullish as a strong retrace has already taken place to the $0.46 mark, and signs of rejection for further downside are seen. Therefore, ADA/USD should soon reverse and look to continue even higher over the weekend.

While waiting for Cardano to move further, see our articles on Siacoin wallet, Pi Wallet, and LTC Wallet Review.

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