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Cardano Price Attempts Breakout As BTC Rebounds

Cardano price has slightly increased since I last covered the topic. On Monday, ADA price is up 1.91% due to a BTC pump in the Asian session. After dropping below $27,000 at the end of last week, Bitcoin price is showing a good recovery. This has boosted investor sentiment in the altcoins.

If you are looking to buy ADA coin for the long term, it might not be an ideal time as the digital asset is yet to show any strength. On a short timeframe, the price action appears to be sideways, which could be a bearish accumulation. I have marked a particular demand zone on the chart, which needs to be held if bulls want to see any upside in the near term.

Cardano enthusiasts can often be seen comparing it with the most widely used L1, Ethereum. Just recently, Cardano overtook Ethereum and other major blockchains in terms of development activity. However, development without any significant adoption rarely has a positive effect on the price.

ADA price has dropped below two key moving averages on its chart. These are the 200 MA and the 50 MA on the daily chart. The death cross of these two indicators, which occurred on 18 June, has given the bears more confidence to aim more downside. If you are an ADA bull, then you must wait for a bullish reversal signal to enter.

ADA Daily Chart

Technical analysis of Cardano price
Cardano Price Chart

Cardano Price – Technical Analysis

I have slightly adjusted the downward trendline on the ADA price chart according to the recent price action. Due to the positive sentiment in the markets, the price is trying to break out from this trend. Cardano price prediction heavily depends on the outcome of this key retest.

In case of a successful breakout, the first bullish target will be $0.27. That will be a 7% price increase from the current price of the native asset of Cardano. The second target could be the $0.31 level, where lies the 200 MA on the daily timeframe.

Considering the recent price action of the equities, I don’t expect a miraculous recovery in crypto prices anytime soon. Nevertheless, the approval of a spot Bitcoin ETF could be game-changing for the whole asset class.