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Cardano Price Analysis: ADA/USD crossed the $2.90 briefly before correcting to the $2.80 support

3 min read

TL;DR Breakdown

  • Cardano has been trading bullishly after it underwent an 8 percent increase.
  • ADA/USD traded between a daily range of $2.81 – $2.950 in the last 24 hours.
  • The MACD histogram on the 4-hour chart is red and signals bearish momentum.

Cardano has been trading bullishly after it underwent an 8 percent increase in the last 24 hours. Therefore, our Cardano price analysis is bullish, with most of the major technical indicators giving positive signals. 

The profit target for bulls in the ADA/USD market lies at $3.00, and the coin has already resumed last week’s momentum and crossed the $2.85 mark at the start of the weekend. 

Cardano’s 20-day EMA begun upsloping 2-days ago from the $2.29 mark and suggested decisive medium-term bias towards the bulls.

Crucial news about Cardano includes efforts to align the foundation with regulations following a partnership with Confirm – a blockchain data company. The partnership is meant to help the Cardano Foundation to conform to regulations outlined by the Financial Action Task Force.

ADA/USD 1-day price chart: Bullish momentum firms hold $2.80 support

Cardano price action witnessed a crucial breakout on August 27th and 28th following a bearish pullback that saw the price drop from an all-time high of $2.97 to a weekly low of $2.47.

According to our daily Cardano price analysis, ADA/USD witnessed a rebound on the 24-hour chart from the $2.47 mark and triggered the bulls to the upper $2.950 mark. Coming short of the ATH by a fractional point. 

ADA/USD traded between a daily range of $2.81 – $2.950 in the last 24 hours. Activity on Coin Market Cap recorded a 29 percent drop in trading volumes to $8.02 billion. Cardano is ranked at number #3 with a total market cap of $91.45 billion. 

4-hour Cardano price analysis chart: Bullish signals on the 4-hour technicals

On our 4-hour Cardano price analysis chart, ADA/USD has its Bollinger bands indicating an upper limit of $2.856 and the lower limit at $2.841. The bands are contracting to suggest dropping volatility across the 4-hour chart. Cardano’s RSI has been dropping on this duration from 60 to the press time index leel of 48. 

Cardano price analysis
Source: TradingView

However, the MACD histogram on the 4-hour chart is red and signals bearish momentum. But note that the red bars are short, suggesting the possibility of short-term bearish momentum. Meanwhile, the momentum began dropping a few minutes ago and we can expect the bulls to regain control and steer the price action to $2.97.

Cardano Price Analysis Conclusion: Where is ADA/USD heading to? 

Cardano has a bullish pattern fully formed that started emerging on the announcement of Cardano’s smart contracts feature that will be launched on Sep 12, 2021. The smart contracts feature will come alongside other features such as the ERC-20 migration tool that will allow ETH users to transfer their projects to the Cardano blockchain. Bulls are betting on this upgrade hoping that it will steer the price of Cardano upwards. Read more about Cardano on our step-by-step guide on how to buy Cardano.

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

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.
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