Cardano is up by 6 per cent in today’s trading session. The price increase in the markets comes amidst weeks of a strong bearish trend that has seen the crypto lose 21 per cent of its value in June alone.
Throughout the year, Cardano has also trended aggressively downwards. In May, Cardano was down by 46 per cent at some point and closed the month with a 17 per cent price drop. The current aggressive bearish trend has also seen the crypto lose 62 per cent of its value since the year started.
Today’s trading session is up by 6 per cent after hitting a long-term support level of $0.444. After hitting the support levels, there was an expectation that the prices would break to the downside and trade below $0.444. However, today’s trading session’s price gain is changing that perspective for the short term.
There is a high likelihood that the current price surge is a retracement rather than a price reversal. It makes sense looking at the past few trading sessions’ price action, where prices have bounced from the support level and failed to break to the downside.
Therefore, my Cardano price prediction expects the current retracement that has resulted in the price surge to be short-term. It is highly likely that the prices will reverse intraday, or in the next few trading sessions and resume the bearish trend, I expect the prices to finally break the support level to the downside and trade below the $0.444 price level.
However, if the prices trade above the $0.55 price level, then my bearish trend analysis will be invalidated. It will also mean a possible price level that will likely see prices rise to trade above the $0.65 price level. Hitting the $0.55 price level may also signal a possible trend reversal, which may push the prices past the $1 price level in the long term.
This post was last modified on Jun 14, 2022, 12:52 BST 12:52