Cardano price analysis: ADA correcting to healthy support level
3 min readTable of Contents
TL;DR Breakdown
- Cardano price analysis shows a healthy correction.
- ADA is correcting to $2.12 support level after a rise.
- Cardano will retest higher levels after correction.
Cardano price analysis shows that the cryptocurrency has been enjoying a steady rise in price during the past week. ADA/USD price started climbing on the 10th of August from the $1.47 price level. Since then, the Cardano price analysis shows a steady rise in the price to the $2.24 high. However, ADA price was unable to maintain support above the $2.12 level and has since been correcting to the healthy support levels.
Cardano price analysis: 4-hours candlestick chart shows correction in play
The 4-hours candlestick ADA/USD price chart shows that healthy correction is currently in play after the pair hit the new high. The strongest support is currently found at the $1.74 price mark.
The Bollinger bands (BB) show a slight increase in the volatility on the 4-hours candlestick chart. The lower BB price value stands at the $1.631 mark serving as the lowest support level. While the upper BB price level is found at the $2.23 mark, acting as the strongest resistance. The moving average support level is found at the $2.08 mark, whereas the BB support average is found at the $1.93 mark.
The correction is evident from the relative strength index (RSI), which is well above the 70 score mark. At the time of writing, ADA’s RSI score is hovering at 75.42, showing the overbought status. Corrections usually occur after the overbought levels are met, and a cryptocurrency has to fall down to healthy support levels after retesting a resistance mark.
Cardano price analysis: 1-day candlestick chart reaffirms the pattern
The one-day candlestick chart further confirms the increased volatility compared to the past seven days. The BB lower and upper values stand at the $0.95 and $2.035 marks. Whereas the moving average support is found at the $1.70 mark.
The RSI score stands much higher on the one-day candlestick chart. The RSI score of 88.55 points indicates that the cryptocurrency is likely to correct towards healthier support levels and the current dip in the price reaffirms this bearish flag movement.
Cardano price technical indicators
Out of the total 26 indicators, almost all of the moving averages are displaying a buy signal. Out of 15, 13 moving averages are on the buy signal while one stands neutral and one is giving a sell indication. Out of the 11 oscillators, six stand neutral, three give a sell indication, and two are on the buy indication.
The three oscillators indicating the sell signal are long-term movement indications that would be of interest if you are a hodler who bought ADA at a much lower price. If that is the case, you are in for a profitable cashout.
Conclusion
Cardano price analysis shows that the cryptocurrency was enjoying the bullish market momentum built by the king of cryptocurrency, BTC. Now the currency is going in for a healthy correction to stabilize the gains made in the past week. If the current support levels above the $2 mark persist, the cryptocurrency will likely retest the $2.3 resistance level very soon. If the support levels fail, ADA price is likely to fall down to the $1.7 mark.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
