The Cardano price strong recovery has faded as investors question the next moves for digital currencies. ADA is trading at $1.1850, which is about 15% above the lowest level this week. Other coins like Polkadot, Binance Coin, and Ethereum have also rebounded.
Cardano declined sharply on Monday as other cryptocurrencies sold off. This sell-off pushed the coin to the lowest level since June 22. It was also about 60% below its all-time high.
This sell-off was triggered by the sharp increase in the number of coronavirus cases in most countries like the US, UK, Australia, and France. As the number of cases rose, the fear and greed index declined to 17 while the CBOE volatility index and the US dollar rose.
Recently, the situation has stabilized, pushing cryptocurrencies and stocks to recoup their weekly lows. The fear and greed index has also risen to 25.
Meanwhile, the top Cardano related news is that the developers have concluded the Alonzo white hard fork. This was an important step towards its full launch in August this year. It will introduce smart contracts, which is the vital technology that helps power Decentralized Applications (DeFi) like Uniswap and Aave. It is also a popular technology that is found in top platforms like Polkadot, Ethereum, and Solana. With the hard fork done, the team at IOHK are now moving ahead with final tests. So, what next for the ADA price?
The three-hour chart shows that the Cardano price strong recovery has faced some resistance at the 38.2% Fibonacci retracement level. The coin has also moved slightly above the 25-day and 50-day moving averages. Notably, it has formed what looks like an inverted head and shoulders pattern. It also seems to be forming a bullish flag pattern.
Therefore, I suspect that the coin will soon soar ahead of the next upgrade. Historically, most coins tend to rally ahead of a major upgrade. On the flip side, a move below $1.1380 will invalidate this price action.
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