Cardano (ADA) at the critical support level | How could the price go from here?

#

On Wednesday, July 14, most of the top cryptocurrencies fell as bears continued to drive prices down. Except for US dollar-denominated stable coins, the top ten most actively traded cryptocurrencies have lost up to 25% in the past 24 hours. Bitcoin token fell 8%, while Ethereum crypto fell 21%. Binance Coin, XRP, and Cardano all saw double-digit declines. Notably, the sell-off occurred at a significantly larger volume, indicating that this trend may persist for some time, experts added.

Cardano’s price has been steadily declining since July 5, and this decline may be drawing to a close. Although uncertain, a rebound from a critical demand zone seems to be the most probable catalyst for an uptrend to begin. Cardano’s price had fallen approximately 19 percent since July 5, when it reached a swing high of $1.495.

As long as Cardano (ADA) remains around $1.276, it has the potential to reverse from its present level and move higher or drop towards the support region. As a result, investors may anticipate a revival of buyers that will push the price over the immediate resistance level of $1.250, followed by a demand zone spanning the price range of $1.287 to $1.318(Refer to the graph below).

Cardano’s price has taken another dive after a brief surge in the early trading hours. The price had developed positive momentum in the late hours of the previous day’s trading, but this seems to have been stifled presently. However, the higher consolidation from the local lows suggests that a possible rebound in the ADA token price is imminent.

A crucial 1-hour candlestick close above $1.318 would confirm a bullish momentum change. Cardano’s price may then continue its rise to test the resistance level at $1.368 and, in a more optimistic scenario, $1.447. If purchasing momentum continues after the recapture of $1.440, ADA may rise to $1.495, which was its price on July 5. 

While failing to follow the pattern, the price rebounded off the freshly established support levels around $1.360 a few times. The price may recover in the following hours due to this.

Additionally, Cardano’s price is in line with the 30-day moving average. As shown in the graph below, Cardano has just surpassed the 30-Day MA, and as seen in the preceding chart, the price has just rebounded off that key support level. When these levels are switched from resistance to support, the bullish trend may be confirmed. Additionally, the Cardano bulls may try to reverse the trend by entering the ring at the appropriate moment. As a result, the ADA price is propelled towards the next goal.

Simultaneously, the Relative Strength Index (RSI) shows a rising slope over the 55 mark. The market is no longer oversold at this stage compared to the previous few trading sessions. This may indicate that bulls are preparing for a brief bull, implying a realistic chance of a short-term gain based on Cardano’s price analysis. The RSI indicates a fast rebound from yesterday’s oversold condition, at around 43.

The modest rise in the slope of RSI may be a precursor to a bit of increase in the price, indicating a short-term gain. Still, resistance and positive momentum continue to fight for supremacy over a more extended period.

So considering the fact that Cardano has just bounced off one of its significant support levels and that both Moving Average and RSI show promising signs, we can say that there are good chances of Cardano going up and reach higher prices. 

You can instantly trade Cardano and all of your favourite cryptocurrencies from our list of popular and credible crypto exchanges. Do consider checking them out. All the best!

Investment Disclaimer

This article is purely for educational purposes, and this doesn’t include any investment advice. Readers are requested to do their research before they consider investing.

#