Cardano price remains above the week’s support zone of $2.50 despite the recent drop from its all-time high (ATH). On the one hand, optimism surrounding the Alonzo hard fork has boosted the crypto by close to 100% since the beginning of August. Nonetheless, a hawkish tone from the Fed Chair later in the day may curb its gains.
ADA continues to find support at 2.50 as has been the case for a week now. After reaching its ATH of 2.97 earlier in the week, Cardanp price has since declined by about 12.68%.
However, since Thursday, it has eased on the decline as optimism on the Alonzo hard fork buoys it above 2.50. At the time of writing, it was up by 2.42% at 2.59.
On a three-hour chart, it is trading slightly below the 25 and 50-day exponential moving averages. In the near term, I expect the crypto to remain above 2.50 while recording limited gains.
It will likely trade within a tight range of between 2.50 and along the 50-day EMA at 2.64. As the market moves into the weekend, a hawkish tone from the Fed may trigger a bearish breakout to 2.38 before bouncing back to the support zone of 2.50.
On the flip side, a cautious stance would be bullish for riskier assets. In that case, the resistance level will likely be at 2.85 as the bulls attempt to retest the week’s high.