After gaining 130% in a month, the ADA price was overdue for a correction. And in the last three days, Cardano has slipped back below the psychological $2.00 level. However, it may be too early to call the top just yet.
Less than a month ago, Cardano (ADA) was nudging $1.000 and testing major uptrend support. Well, since the July 20th low, the ADA price has been on a ridiculous run, reminiscent of April and May this year. In the 24 days that followed, Cardano closed higher 20 times, surging 127.8% to $2.2881 and within just 10% of the $2.5147 all-time high.
However, billionaire Crypto investor Mike Novogratz seems convinced that certain rivals may offer developers superior options.
As a result, Cardano has reversed around 16% lower following the Tweet, but to be fair, the whole market is lower in the last three days. However, unlike many other cryptos, ADA is now testing major support. And should it lose the $1.900 level, Cardano may be in for a bumpy ride in the near term.
Firstly, the positives: Cardano has surged way clear of the major moving averages and advanced beyond the horizontal resistance at $1.4700 and $1.9000. Additionally, the pause in the last three days has helped the ADA price shake off the previous overbought Relative Strength Index reading of 88.11. This should allow an orderly climb higher as long as the $1.9000 support holds.
Although, if it doesn’t, the obvious target is the former resistance at $1.4700. This was a significant barrier on the way up and, therefore, should prove the same on the way down.
If ADA clears $2.2881, we should be on track to set a new record price sometime soon. For now, the outlook is still positive, and this will increase above Saturday’s high. However, this view is valid only above $1.9000. A close below this price invalidates the bullish outlook and suggests the bears are back in charge.
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