ADA Finds Support Near $0.43; Is Bounce Back Possible?

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Cardano price analysis indicates a downside moment for the day. The price traded in the red for the past few hours. However, reliable short-term support formed near the $0.43 zone as the price bounced back toward $0.45 recovering part of its daily losses.

However, the overall market remains bearish, and a further drop below $0.40 could not be ruled out.

As of press time, ADA/USD is reading at $0.45, down 2.35% for the day. Over the 24 hours, the trading volume dropped marginally to $717,338,715  as per the CoinMarketCap data. The current market cap stands at $15,308,094,431, making it the eighth largest crytpocurrency.

  • Cardano’s price drops marginally lower as the fresh trading begins.
  • The formation of multiple ‘Doji’ candlesticks near $0.43, makes bulls hopeful for a swift recovery.
  • Technical indicator warns of aggressive bids before confirmation of the fresh directional setup.

Cardano price stabilize near $0.45

Source: Trading view

On the daily chart, the Cardano price analysis shows an interim consolidation zone.

Recently, ADA fall more than 20% in just three trading days and is now consolidating near recent lows.

The price s forming an inside candle formation pattern, which is mainly a consolidating before then the big move to its continued trend, which is in case it is bearish.

On Aug 19, the price fell sharply nearly by 12%, breachign the short-term horizontal support zone. Further, it marked the breaking of the 50-day exponential moving, along with its previous swing low. The nearest support for ADA is at $0.43, whereas the most immediate resistance is at $0.46. There is a higher probability of price testing its resistance first, however, it would be interesting to watch if it could break the upside barricade.

So there is an opportunity to take i.e. “Sell on Rising” near the resistance. Although, If the price breaks its support level, firstly, then also we can enter into a short trade.  

The RSI (14) is trading below 50. When the relative strength index is below 50, it generally means that the losses are greater than the gains. Whereas, the MACD line crosses below the signal line below zero, indicating a bearish trend. 

Source: Trading view

ADA on the two-hour chart, formed a “Double Bottom” pattern, along with a bullish Hammer candlestick pattern, indicating a possible reversal from its lows.

If the price closes above $0.45, on the two-hour chart, we can expect a short-term reversal, which will be good for shorting on higher levels. Further, a break above the $0.4715  level amid sustained buying momentum could invalidate the bearish outlook. And the price can move toward $0.50.

Also read: http://Institutional Investors Didn’t Sell Their Crypto Holdings Despite Market-Wide Selloff

On the other hand, a spike in sell order with prices dropping below $0.43 would be favorable conditions for the bears.

ADA is slightly bearish on all time frames. Below $0.43  closing on the daily time frame, we can put a trade on the sell side. 

Rekha has started as Forex market analyst. Analyzing fundamental news and its impact on the market movement. Later on, develop an interest in the fascinating world of cryptocurrency. Tracking the market using technical aspects. Exploring on-chain analysis to track the market.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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