Cardano (ADA) has been a frustrating long-term hold for investors, who have watched its market capitalization rise from $0.1 billion to nearly $40 billion, but still fall by about $8 billion. In 2017, Cardano achieved its first exchange listing, but a series of technical problems and delays kept its trading volumes low.
Cardano is a distributed computing platform and smart contract platform created by Charles Hoskinson and Jeremy Wood. Cardano has been in the market since October 2017, and is currently in the early stages of development. Cardano aims to be the first blockchain that is capable of running smart contracts at scale.Summary of the situation
- The analysis of the Cardano price fluctuates between two support points
- The $1.42 price level has become an accumulation point for high sellers.
- At the time of writing, Cardano is trading at $1.2904.
Gimbal price analysis: Price Overview
Cardano’s price analysis on the weekly chart is fluctuating between the support levels of $1.00 and $1.200. As a result, bears and bulls fight out a balancing act to see who will lead the next leg of the movement. Volatility has been moderate in recent days, with average to small daily swings.
Bulls hope for redemption and momentum consolidation before the $1.42 cut. Nevertheless, the prevailing confrontation has led to indecision among market participants, with bears expecting a large-scale consolidation at $1.35 to fail. The $1.42 price level, which is also the highest of 2018, has become a point where large sales volumes have piled up, making it a price barrier.
Cardano price movement in the last 24 hours: How do you defuse a sustained confrontation?
It is difficult to chart a direct course of action when the financial market is in a state of confrontation. However, the presence of bears on today’s 24-hour chart indicates a pullback of buyers after the currency broke below $1.3460 in early trade. Cardano failed to break above $1.3550 in yesterday’s session before sellers completed a pullback to $1.30.
The bulls tried to eliminate selling volume around this level between yesterday’s close and today’s open. Unfortunately, the bulls are losing the battle and have opened the door for the bears to break through the first support level of $1.30 and make new lows at $1.27 and $1.29. The Bollinger Bands are shortening (again), indicating a decline in volatility.
On the other hand, the lower band of the 4-hour chart has fallen, indicating the possibility of further losses. The current level of $1.30 to $1.00 represents a strengthening of sellers and will only keep the price in the current confrontation. The best way for the market to get out of the current impasse is to get support from the broader market and attract more buyers to break through the 2018 top and turn it from resistance into support.
Chart of Cardano’s 4-hour course Can a break of $1.2900 lead to further losses?
At the time of writing, Cardano is trading at $1.2904 to the US dollar. According to Cardano’s 4-hour price analysis, the 200-day simple moving average is around $1.03 and has lost the accumulation of buyers that made it a strong support in late June. The only way for buyers to sustain the next leg up is to gather more headline volume, and the best way to do that is for Cardano’s price to reach levels above $1.42.
At this point, investors may take the opportunity to stock up for the next leg of the bullish run to an all-time high. Cardano did not show significant growth in July. We are only two days into the month and both bulls and bears are facing increasing indecision. The currency has already broken below $1.30 per ounce, and further weakness could make ADA bearish and lead to a sharp decline towards $1.00.
Cardano price analysis output: Where is Cardano going?
Overall, the market is under heavy pressure from financial regulators, which could be the main reason for the current standoff between the bulls and the bears. Experts believe that the current bear market might not have lasted as long if crypto activity in China, the UK and Mexico had not been suppressed.