- The market capitalization of ADA is $21.22 billion, and it ranks 8th in the cryptocurrency market according to its market cap.
- Cardano cryptocurrency’s price has jumped by 20% this month.
The Cardano (ADA) price has been bullish since October and has risen 138%. The bullish trend was interrupted near the $0.650 mark, and buyers tried to sustain this level, but sellers were strong enough to drag the price down. According to the technical chart, the ADA price spent some time near the $0.650 level; it dropped by 27% in a few weeks.
As we can see on the chart, the Cardano crypto price bounced back from the $0.450 level and reached the resistance level of $0.650, and selling pressure was detected for the short term. The current market price of ADA is $0.595, which has dropped by 2.21% in the last 24 hours.
The 24-hour trading volume of Cardano is $398.81 million, which has decreased by 12.45%. According to the trading volume, Cardano ranks 19th in the cryptocurrency market.
The Cardano Price is Near the 52-week High; What’s Next?
The ADA crypto price has dropped by 7.65% in the last four days, and it has taken support on the 20-day moving average. This fall can still convert into a pullback if the price manages to defend the 20-day moving average.
According to the price action, the buyers may lift the ADA price to a multi-day high if it manages to defend the 20-day EMA and surpass the last swing high. However, if the Cardano crypto price sustains the $0.700 level, the bullish trend may continue for the next few weeks or months.
On the other hand, the ADA price may approach the 50-day EMA in the next few days if it fails to defend the 20-day moving average. In case the sellers pull the price below the 50–day moving average, it may melt to the $0.450 level, and a long-term bearish momentum can be observed.
Technical Analysis of the ADA Price Over the 4-H Timeframe
In a 4-H time frame, the Cardano price has stuck in a parallel channel after a bullish momentum. For the past few weeks, the price has performed positively and recorded a 52-week high. The selling pressure was detected for the short term.
If the price defends the $0.570 mark, it may continue the previous trend, but if it fails to do so, the investors may prefer to book profit, and that may lead to a sharp selling pressure.
Conclusion
Based on the technical analysis of the Cardano (ADA) crypto price, it seems that the price is facing some selling pressure in the short term after reaching its 52-week high. However, if it manages to defend the 20-day moving average and surpass the last swing high, the price may continue to rise to a multi-day high. On the other hand, if it fails to defend the 20-day moving average, it may approach the 50-day EMA. Suppose it drops below that level, a bearish trend for the long term may be observed.
Technical Levels
Resistance: $0.630 & $0.680
Support: $0.570 & $0.530
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.