The Price of Cardano (ADA) and its Recent Movement
The price of Cardano (ADA) is currently trading near the midpoint of a long-term range. This comes after a rejection from the top of the range in July. The rejection was confirmed when the price lost an ascending support line, indicating a correction phase.
Main Breakdowns of the Content’s Key Points:
- ADA was rejected by the $0.38 horizontal resistance area in July, creating a long upper wick and signaling selling pressure.
- The closest support area is at $0.25, near the yearly lows, despite an increase in total value locked in the Cardano blockchain.
- The ADA price now trades at $0.27, 10% above the $0.25 support area.
- Cardano whales have withdrawn $29 million in 7 days, and network activity has declined steadily in July.
- The weekly RSI gives an undetermined reading, indicating an undetermined trend.
Bearish Outlook for ADA Price
The analysis conducted on the six-hour timeframe supports a bearish perspective for ADA. The Elliott Wave principle suggests a bearish trend, and a breakdown below a short-term upward support line further validates this outlook. A potential decline of approximately 10% could take the price to the $0.25 horizontal support level. However, a strong bounce at the current level could lead to an upward movement towards the previous ascending support line at $0.33.
Hot Take:
The price of Cardano (ADA) is currently facing resistance and undergoing a correction phase. The bearish outlook suggests a potential decline towards the $0.25 range, but a strong bounce could lead to an upward movement. As a crypto reader, it is important to monitor the price movement and market conditions to make informed investment decisions.
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