The Cardano (ADA) Price: Trading Range and Rejection
The Cardano (ADA) price is currently trading within a long-term range, having been rejected by the range high in July. This rejection was further emphasized when the price broke down from a short-term ascending support line, indicating a correction in the ADA price.
Main Breakdowns:
- ADA has been trading above the $0.25 horizontal area for most of the year, with a brief dip in June.
- The long lower wick during the dip suggests buying pressure and a bullish trend.
- ADA failed to break out from the $0.38 horizontal area in July, confirming it as resistance.
- The ADA price now trades between $0.25 and $0.38.
- The weekly RSI does not confirm the trend’s direction, currently below 50.
Charles Hoskinson’s Network Enhancement Plans
Despite the current price situation, it is important to note that Charles Hoskinson, the creator of Cardano, has revealed plans for a network enhancement aimed at improving the speed and effectiveness of the Cardano blockchain.
The Bearish Outlook and Price Prediction
Technical analysis from the six-hour timeframe indicates a bearish interpretation for the ADA price. The Elliott Wave count suggests the conclusion of a corrective A-B-C structure, pointing to a potential bearish trend. The recent breakdown from the short-term ascending support line further confirms this bearish outlook.
If the ADA price continues to decline, it could drop by another 17% and reach the $0.25 support area. However, if the price regains strength, it could increase by 8% and validate the ascending support line as resistance, potentially reaching $0.38.
Hot Take:
Overall, the Cardano (ADA) price is currently in a range and experiencing a correction. While there are bearish indications in the technical analysis, it’s worth considering Charles Hoskinson’s plans for network enhancement. The future direction of the ADA price will depend on how it performs within the range and whether it can regain strength or continue the downward trend.
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