Cardano price analysis: Cardano spikes to $1, steady reversal higher to follow?

TL;DR Breakdown

• ADA moved lower overnight.
• Support found around the $1 mark.
• Market ready to retest the $1.30 mark

Cardano price analysis is bullish for today as the market reached the $1 mark and started to reject further downside over the past hours. Therefore, we expect ADA/USD to move higher and reach toward the previous major resistance around $1.30.

The overall market trades in the red over the last hours. Bitcoin has lost 3.3 percent, while Ethereum 5.95 percent. The rest of the market follows this pattern with Ripple (XRP) being among the worst performers. Cardano is in the middle of the pack with an 8.8 percent loss.

Cardano price movement in the last 24 hours

ADA/USD traded in a range of $1.00 – $1.30, indicating a good amount of volatility. Trading volume has increased by 61.8 percent and totals $5.6 billion. Meanwhile, the total market cap trades around $37 billion, ranking the cryptocurrency in 5th place.

ADA/USD 4-hour chart – ADA continued to move lower today

On the 4-hour chart, we can see the Cardano price continuing to retrace over the last 24 hours, with the $1 previous swing low support tested over the past hours.

The overall market trades in a bearish price action structure over the past weeks. After initially spiking to the $1 mark during the second half of May, ADA/USD retraced higher to the $1.80 mark, where resistance was established.

From there, ADA/USD mostly moved sideways as bulls looked to regain control. However, on the 3rd of June, Cardano started to retrace once again after setting a slightly higher high at $1.90.

What follows was a slow move to the $1.35 support and a further move lower over the following days after another lower high was set. This price action development resulted in another test of the $1 mark, which so far seems to prevent the Cardano price from further downside.

Therefore, we expect ADA/USD to push higher over the next hours and potentially reach to retest the $1.30 resistance over the next 24 hours. From there, ADA/USD likely will attempt to move below the $1 mark. 

Cardano Price Analysis: Conclusion 

Cardano price analysis is bullish as a further downside is rejected for now and we can see a bullish 4-hour rejection candle forming over the past hours. Therefore, we expect ADA/USD to regain some of the loss over the next hours and test the $1.30 resistance.

While waiting for further Cardano price action development, read our guides on DeFi advantages, Bitcoin fees, as well as what can you buy with Bitcoin.

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-2021-06-22/