The Cardano price retreated in the overnight session as traders reflected on the Coinbase direct listing. ADA is trading at $1.4253, which is 8.65% below its all-time high of $1.5572. The currency is now valued at more than $45 billion and is the 6th biggest digital coin in the world.
What happened: Cardano and other digital currencies rallied earlier this week as traders waited for the Coinbase debut as a public company. The debut was relatively successful as the company’s value climbed to more than $85 billion. This made it one of the biggest American fintech companies.
However, after the debut, many cryptocurrencies retreated as investors started to take profit. This was in line with what I predicted yesterday, when I wrote that Bitcoin would retreat. In the market, this is known as buying the rumours, selling the news. The Cardano price also retreated because of profit-taking. Furthermore, the currency has surged by more than 845% this year and it is close to an all-time high. So, what next for Cardano? Looking ahead, there is a possibility that it will rebound as the market waits for the next upgrade to Plutus. This update follows the now Goguen era and will include smart contracts capability.
The four-hour chart shows that the ADA price surged to an all-time high this week. As it has retreated, the cryptocurrency has formed what seems like a bullish pennant pattern that is shown in black. In technical analysis, this is usually a signal that the price will keep rising.
The price is also slightly above the 25-day and 50-day moving average. Therefore, in my view, the currency remains in a bullish trend. If this happens, it will rebound above the ATH at $1.5572. However, a drop below $1.3500 will invalidate this trend.
