Cardano (ADA) Price Falls 35% From All Time High, Will Bulls Gobble Up The Dip?

• ADA price has fallen over -30% the last week
• ADA Price has bounced off long term trend line
• ADA Price must regain $2.51 to be out of hot water

Cardano (ADA) price has went on an amazing run over the last month as prices rose over 200% from $1.00 past $3.00. This price movement was largely credited to the anticipation of smart contract capabilities going live on the Cardano blockchain after nearly 4 years of hard work. To everyones surprise, the beta version of this capability went live last week & It was only able to process 1 transaction per block.

This was much less than anticipated but the founder reassured everyone its the beta version & improvements will be coming. Overall, it seems that ADA finally reset itself after such a strong push the last month or so.

While looking at the last few weeks of price movement, we can see how ADA started to go sideways after $3.00 was nearly reached. The price formed a rising wedge & earlier today, ADA completely broke to the downside of this wedge. Once the support of $2.79 was lost, ADA tumbled to a multi week low. Prices fell nearly -30% in just under a few hours.

The bottom wick bounced off the long term trend as the 4 hour candle managed to close above the mid term trend that has been respected for a few weeks. At the time of writing, ADA is attempting to break above its major resistance zone of $2.51.

Cardano Price Analysis: ADA/USDT 4 Hour Chart

If ADA manages to break & hold this major resistance, price will then shoot to levels near $2.65 where its next major resistance sits. ADA has refused to close a candle below its major support of $2.37. In the event bears continue their dominance & ADA gets pulled below this support level, trouble may be ahead. Currently ADA has bounced clearly off its 200MA which has held price for over a month. Any drop below these two marks will leave ADA back to low $2.00 range.

• While looking at the Stochastic RSI, we can see strength has just reset completely within the oversold region. At the time of writing, ADA is bouncing out of this oversold region back towards a trend line that has been respected for nearly a week. Strength must completely break & hold this trend line for ADA to be confirmed in a bullish revival.
• While looking at the MACD we can see the MA’s have fallen to a multi month low. This is a great sign the tables were cleaned & once the histogram ticks green again, expect a stronger revival to occur.

ADA Intraday Analysis

• Spot rate: $2.51
• Trend: Bearish
• Volatility: Medium
• Support: $2.37
• Resistance: $2.51

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