Cardano (Ada) Price analysis permalink
Cardano is presently trading at $2.24, having recovered 17.63 percent from its weekly low of $1.91. The volatile cryptocurrency, which is now ranked third in terms of market capitalization, recently debuted its long-awaited smart contracts platform, which will pave the way for DeFi development.
However, as traders profited from the "buy the rumour, sell the news" theory, the good feeling surrounding the upgrade quickly faded, and the stock's price plummeted by more than 30%.
Most significant news events follow this pattern, with hype building up to the event before deleveraging punishes those who bought at the peak. When Coinbase became live on Nasdaq on the day of Bitcoin's all-time high of $65,000, it was a good example of this.
While Cardano's recovery has shown signs of momentum this week, it is still stuck at a number of technical roadblocks.
Since it rose above it on August 1, the daily 50 exponential moving average has been a significant point of support. Cardano fell below that major moving average during the most recent sell-off, and it is currently acting as a harsh level of support.
If ADA can end a daily candle above the 50EMA at $2.28, it will most certainly return to the range's top of $2.65.
If this level is rejected, a definite decline will form, with downside price targets as low as $1.55 and $1.39 emerging.
About Cardano: permalink
Cardano claims to have attempted to alter the way cryptocurrencies are built and grown by combining the greatest features of many cryptocurrencies into a single token. A global team of scientists and scholars began working on the project in 2015. In September of 2017, ADA was released.
Cardano is one of the most popular cryptocurrencies, ranking among the top ten by market capitalization.