Cardano traders raking yields from price dips

TL;DR Breakdown

• Cardano price undergoes bullish reversal that pushes it above the 50-day SMA.
• Apart from ADA, the majority of coins are struggling to overpower the 200-day SMA. 
• Cardano breaks into a head and shoulder pattern on the 4-hour chart

Cardano Price Prediction: General price overview

Cardano(ADA) posted a remarkable recovery on the 24-hours daily chart after an upward reversal to the 50-day SMA. Which made it beat other altcoins as they struggled to recover back to the 200-day SMA following a price bloodbath across the entire market. Buyers in large numbers are betting on Cardano (ADA) as the next big thing,g and this demonstrates the coin is likely to drive the next altcoins bull run. 

The current price of ADA is testing retracement at the 0.618 FIB (above $1.75). If the bulls manage to steer a solid breakout, the residing resistance might become the new support. Have a look at this: 

(Source: Tradeview)

During press time, Cardano is trading at $1.7571 and is already diverting all bearish pressures after recording the highest 2-week gain since 2018.  From May 5th, the cryptocurrency has been in a reluctant consolidation process, rewarding investors immensely for purchasing the dip whenever the price capitulates. Despite the past few days facing an imminent price breakout at 23% gains, the coin still shows signs of a near-term upward correction. 

On market capitalization, ADA dipped from $58B to $55B between Monday and Today, a situation that might end toppling the coin among the number 10 digital currencies by capitalization. 

Cardano price movement in the past 24-hours

Cardano’s price sank by 63% on yesterday’s daily chart forming a 2-day low. Buying pressure from dip investors rushed in and rebounded the price by 60% to levels above the 50-day Simple Moving Average. The good news is the bulls were able to rise to the occasion and take over the 20-day EMA (Exponential Moving Average) and already established strong support at $1.73. 

Investors have their hopes high as long as they sustain the 50-day SMA above $1.48. But if the bears steal the show and pull the price backward below $1.40, all investors’ interests will be crashed, and the price could proceed to the previous crash low of $0.91.  

The intraday low on the 24-hour chart is $1.7263, while the intraday high is $1.8700.  At the time of writing, the technicals are pointing to buyers. This bullish indicator might drive ADA’s price above crucial resistance at $1.900 and $2.00. 

(Source: Tradeview)

Cardano 4-hour price movement 

ADA is trading within a head and shoulder pattern on the 4-hour chart. The neckline is at $1.7454, from which the bulls are amassing enough pressure to drive the price above April’s $2.33 correction.  Near-term corrections and targets ought to be evaluated from within this zone. 

(Source: Tradeview)

Conclusion

Investment managers tracking high-risk profiles should look at Cardano’s Relative Strength Index and be active whenever possible to trade ADA’s high-interest dips. Long-term investors can still hope for the best as the blockchain community looks forward to the smart contracts launch in August. 

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.