Cardano Price Analysis: ADA retraces to $2.55, swift reversal to follow?

TL;DR Breakdown

• Cardano price analysis is bullish for today.
• ADA/USD continued to retrace overnight.
• Support was found at $2.55 earlier today.

Cardano price analysis is bullish for today as the market retraced to the $2.55 support overnight and currently rejects further downside. Therefore, we expect ADA/USD to reverse later today and look to regain some of the loss seen earlier this week.

Cryptocurrency heat map. Source: Coin360

The cryptocurrency market traded with mixed results over the last 24 hours. Bitcoin is down by 0.79 percent, while Ethereum remains flat. Cardano (ADA) is among the worst performers, with a loss of 1.39 percent.

Cardano price movement in the last 24 hours: Cardano continued to retrace overnight

ADA/USD traded in a range of $2.53 – $2.80, indicating mild volatility over the last 24 hours. Trading volume has decreased by 24.96 percent and totals $6.93 billion. Meanwhile, the total market capitalization trades around $83.26 billion, resulting in a market rank of 3rd place.

ADA/USD 4-hour chart: ADA set to reverse?

On the 4-hour chart, we can see the Cardano price finding support at the $2.55 mark after a retracement overnight.

ADA/USD 4-hour chart. Source: TradingView

Cardano price action has seen a rapid advance over the past month. After establishing a new swing low above the $1 mark, ADA/USD rallied by almost 200 percent, with the last swing high set below the $3 mark. 

What followed was a quick retracement of almost 15 percent to the $2.55 previous minor resistance level, which now acts as a support. As long as the Cardano price can hold above this support, we expect reversal back to the upside later today.

Alternatively, if the $2.55 support breaks, ADA/USD should see further downside, with the next minor support level around $2.40. Overall, we do expect Cardano to hold the $2.55 support and regain some of the loss later today.

Cardano Price Analysis: Conclusion 

Cardano price analysis is bullish for today as we can see the $2.55 support retested over the past hours after another decline overnight. Therefore, we expect ADA/USD to reverse later today, and look to regain some of the loss seen over the last days.

While waiting for Cardano to move further, read our articles on Wrapped Bitcoin, Decentralized Exchanges, as well as NFT Marketplace.

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.