The Cardano price has found a strong support above the $1 support level. ADA is trading at $1.3212, which is 32% above the lowest level last week. This brings its total market capitalization to more than $42 billion, making it the 5th biggest cryptocurrency in the world. It is sandwiched between Dogecoin and Binance Coin.
Cardano news: Cardano and other cryptocurrencies are relatively higher than their lowest level during the weekend. This is happening even as the UK became the next country to put its emphasis on Binance, the biggest crypto exchange in the world.
The country’s Finance Conduct Authority (FCA) asked the company to stop offering regulated products. It also issued a customer warning about Binance.com. The regulator also warned that no company under Binance’s umbrella was authorized to conduct regulated activity in the UK. The new warning puts pressure on Binance, which is also being probed by the IRS and the Justice Department. German regulators have also warned the the public against the company.
This is notable because of Binance role in the crypto industry. At its peak, the company’s volume rose to more than $1.4 trillion per month.
The Cardano price is also rising as part of the overall crypto rally. Bitcoin, the biggest coin has seen its price surge to more than $34,000 while Ether and Binance Coin have also rallied.
The daily chart shows that the ADA price has found a strong support at the $1 level. Its previous attempts to move below this level have failed, sending signals that the coin is about to bottom. However, the pair remains below the 100-day and 50-day exponential moving averages (EMA), which means that bears are still in control. Most notably, the coin seems to have formed a head and shoulders pattern, which is usually a bearish sign.
Therefore, while the overall outlook for the coin is still bearish bears will need to move below the support at $1. If this happens, it will open the possibility of the coin falling to $0.5. This is in line with what I warned last week. However, a move above the two moving averages will invalidate the bearish thesis.
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