The Cardano price is bouncing back after it crashed to a multi-week low during the weekend. ADA is trading at $1.3700, which is 43% above the lowest level during the weekend. Its total market capitalization has dropped to more than $43 billion making it the 4th biggest digital currency in the world.
What happened: Cardano has had spectacular growth in the past few months. The blockchain network has grown popular among developers seeking an alternative to Ethereum. This growth and user adoption will likely continue as the network rolls out smart contracts features, which will help them be able to develop decentralized applications like DeFi and NFTs.
However, like all digital currencies, Cardano has struggled in the past week. This happened as investors focused on the overall performance of Bitcoin, which is the most followed digital currency in the world. Precisely, there are concerns about interest rates, valuation, and regulations. So, what next for ADA prices?
The four-hour chart shows that the ADA price has bounced back after it crashed to $0.9300 yesterday. The coin has jumped by more than 40% to the current $13700. Still, the chart shows that the ADA is trading below the 25-day and 50-day exponential moving averages (EMA).
It has also moved above the 78.6% retracement level and is now approaching the 61.8% retracement at $1.5115. It is also slightly above the next key resistance level at $1.5583.
Therefore, for now, in my view, ADA will remain in a bearish trend so long as it is below the 50% Fibonacci retracement level at $1.6920 and the two moving averages.
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