Cardano (ADA) Price Falls 35% From All Time High, Will Bulls Gobble Up The Dip?

By Domenic
Published September 8, 2021 Updated September 8, 2021
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Cardano (ADA) Price Falls 35% From All Time High, Will Bulls Gobble Up The Dip?

By Domenic
Published September 8, 2021 Updated September 8, 2021
  • ADA price has fallen over -30% the last week
  • ADA Price has bounced off long term trend line
  • ADA Price must regain $2.51 to be out of hot water

Cardano (ADA) price has went on an amazing run over the last month as prices rose over 200% from $1.00 past $3.00. This price movement was largely credited to the anticipation of smart contract capabilities going live on the Cardano blockchain after nearly 4 years of hard work. To everyones surprise, the beta version of this capability went live last week & It was only able to process 1 transaction per block.

This was much less than anticipated but the founder reassured everyone its the beta version & improvements will be coming. Overall, it seems that ADA finally reset itself after such a strong push the last month or so.

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While looking at the last few weeks of price movement, we can see how ADA started to go sideways after $3.00 was nearly reached. The price formed a rising wedge & earlier today, ADA completely broke to the downside of this wedge. Once the support of $2.79 was lost, ADA tumbled to a multi week low. Prices fell nearly -30% in just under a few hours.

The bottom wick bounced off the long term trend as the 4 hour candle managed to close above the mid term trend that has been respected for a few weeks. At the time of writing, ADA is attempting to break above its major resistance zone of $2.51.

Cardano Price Analysis: ADA/USDT 4 Hour Chart

TradingView Chart
If ADA manages to break & hold this major resistance, price will then shoot to levels near $2.65 where its next major resistance sits. ADA has refused to close a candle below its major support of $2.37. In the event bears continue their dominance & ADA gets pulled below this support level, trouble may be ahead. Currently ADA has bounced clearly off its 200MA which has held price for over a month. Any drop below these two marks will leave ADA back to low $2.00 range.

  • While looking at the Stochastic RSI, we can see strength has just reset completely within the oversold region. At the time of writing, ADA is bouncing out of this oversold region back towards a trend line that has been respected for nearly a week. Strength must completely break & hold this trend line for ADA to be confirmed in a bullish revival.
  • While looking at the MACD we can see the MA’s have fallen to a multi month low. This is a great sign the tables were cleaned & once the histogram ticks green again, expect a stronger revival to occur.

ADA Intraday Analysis

  • Spot rate: $2.51
  • Trend: Bearish
  • Volatility: Medium
  • Support: $2.37
  • Resistance: $2.51
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Disclaimer
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.
About Author
Domenic
132 Articles
Domenic Fiore has a love for the financial markets. He decided to skip the college route to pursue entrepreneurship. He saw the vision to become an entrepreneur and wanted to achieve success from a young age. Domenic owned & operated a car detailing business since the age of 16, along with being a part of two CBD businesses through 2018 & 2019. He started his investment and trading career early trading in 2017 when he bought a newly released cryptocurrency alt-coin and saw 10x return in a few months. He then realized there was much potential and dove head first into learning everything he could. He became very passionate about technical analysis and knew it was his route to financial freedom. Over the last 4 years, Domenic has shared his analysis with many groups and received amazing feedback. Shortly after he wanted to help assist in the pursuit of spreading and helping others achieve success in the trading industry.

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