The ADA price continues to find a bid below the psychological $2.00 barrier, although Cardano is failing to gain bullish momentum. Furthermore, the Cardano price is running into resistance at increasingly lower levels, indicating the longs may be starting to get restless.
Like most cryptocurrencies, Cardano spent the first half of the summer languishing way below the May highs. However, the crypto market turned broadly higher in the third week of July. Out of the top-ranked cryptocurrencies, the ADA price was one of the better performers in the third quarter. High transactions fees on the Ethereum Network (ETH) caused several of the so-called Ethereum killers to outperform following the July lows. The ADA token surged more than 200% from the 21st of July to the start of September as investors wagered Cardano’s Alonzo upgrade would cement the network as the biggest threat to Ethereum’s crown. However, despite the successful launch, ADA reversed from a $3.16 high and is now doing business 30% lower at $2.11. Despite the sharp correction, more downside could follow unless ADA holds above $2.00.
The daily chart shows a descending trendline caps the ADA price at $2.28. The trend is the first significant resistance level, followed by the 50-day moving average at $2.42. Below the market, the 100-day moving average at $2.00 aligns with a series of lows to create robust support. The immediate danger for bulls is a close below the 100 DMA which would likely encourage long liquidation.
If Cardano falls below the 100 DMA on a closing basis, a logical target is the 200 DMA at $1.72. In this event, the 200 DMA must hold the price to avert a much steeper decline, targeting the $1.50 area. For now, the price is conflicted, making an ADA price prediction difficult. However, a clearer picture should emerge in the next few days.
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This post was last modified on Oct 13, 2021, 09:10 BST 09:10