Cardano Price Analysis: Cardano rejection at $1.42 scattered bulls, who are back to drawing board

TL;DR Breakdown

• Overall weekly cryptocurrency market is bullish despite tightening regulation
• Cardano started off the week with a bullish uptrend and gained over 5 percent
• At the time of writing, Cardano is trading at $1.3460 

Cardano Price Analysis: General price analysis

The overall weekly cryptocurrency market is bullish despite tightening regulatory activity. UK’s financial watchdog has banned Binance exchange in the country and termed all crypto-related activities as illegal. The total market capitalization of the cryptocurrency market went down by 19 percent following the May crash. As a result, it cleared an estimated $1.8 trillion. Pundits blame increasing regulatory oversight as the main reason hindering the recovery process and have urged market participants to expect the bear cycle to take longer to recover. 

Cardano price, for instance started the week with a bullish uptrend and gained over 5 percent on June 28, but the bulls failed to sustain themselves towards a higher target. One milestone the bulls managed to achieve during the weekly start overturned the $1.2 price resistance into strong support. In fact, they are eyeing their last target towards $1.9 but unfortunately, strong seller volumes rejected yesterday’s uptrend at the 20-day exponential moving average at $1.42. Despite being a rather apparent bullish strength, it is also evident the bears are not willing to let go of the tug fight. Buyers are, on one hand, anticipating the trend to break out above the last target, which will give them a steering force to crush resistance near the all-time high and spark the next bull rally. 

Cardano price movement in the last 24-hours

Cardano (ADA) kicked off the daily trading chart at an opening price of $1.3540 and attempted a breakout where it set an intraday high of $1.3817. Sellers invalidated three white soldiers and reversed the uptrend within a falling wedge pattern; that begun from the intraday high and ended at $1.3181. Across the chart,  Cardano’s daily range is low, suggesting low volatility – quite an essential metric for swing and day traders. 

Cardano price movement traded below the Bollinger band mid-line for the better part of the day and only broke above the mid-line into the moving average on the 4-hour chart between $1.337 – $1.355. Also, take note of the expanding bands on the 4-hour chart, an indicator of residing seller volumes. 

Cardano 1-hour price chart

At the time of writing, Cardano is trading at $1.3460 against the US dollar.  A red candlestick has connected the coin’s price to the mid-band, and the RSI is facing downwards at 50. The negative perspective is the bears might attempt to sink the price below $1.33 and exert a pullback to the high lows below $1.

The positive perspective is entry of sellers with the RSI flattening towards the overbought region. 

Cardano price analysis conclusion

Yesterday’s rejection at $1.42 crashed hopes for the bulls to regain the market and drive the next leg of the weekly uptrend towards $1.75 – $1.95. The bulls are again back to the drawing board to figure the best way to overturn the current stalemate. For the second consecutive week, Cardano (ADA) is still trading within the same price level and has not witnessed any significant gains. Cardano price bulls are hoping to wage support from the broader market and see the price set a 14-day high to counter all bearish pressures. 

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Source: https://www.cryptopolitan.com/cardano-price-analysis-2021-06-20-2/