Cardano Price Movement Analysis for 24th May, 2021

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Cardano experienced a massive price drop over the last week, falling by 58 percent from its high of $2.51. Following yesterday’s bloodbath, the ADA reached a low of $1.23. It had kept on to the $1.40 price range for most of May, but as market pressure grew, the value fell below this level.

ADA was valued at $1.49 at the time of publication, with the cryptocurrency trading in the equilibrium region.

 

Cardano [ADA] daily chart

The attached map of Cardano depicted the dramatic increase in price from $1.30 to $2.51 inside an ascending channel. However, the alt’s price broke down from this huge channel three days in a row. After a brief uptick in the middle of the week, ADA’s stock struggled to break through the $1.80 resistance mark and fell once more. This decline lasted three days, with the market retracing at the time of publication.

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If the price begins to fall, there is a chance that the digital asset will consolidate.

 

Reasoning

The stock has been travelling along the $1.47 price range, which was serving as resistance at the time of publishing. About the fact that the price is similar to this mark, volume has not been large at this stage. The obvious range indicator indicated that traders were not enthusiastic about the current market, and the next strong support provided by traders was $1.22.

If the press time price falls below the 50 moving average, there is a greater risk that the price will consolidate between $1.47 and $1.30. A surge in purchasing pressure, on the other hand, could quickly drive the price down to $1.22 – a desirable trading pace.

Meanwhile, momentum had exited the ADA market, thus, a price swing seemed like an unlikely event in the present market.

Conclusion

At press time, the Cardano market seemed to be healing from a bloody fortnight. The blockchain is preparing for the Alonzo hard fork, which will enable developers to create smart contracts on Cardano, and community support will be critical, especially to stabilise the volatile market. With the necessary funding, ADA’s price could range between $1.30 and $1.47.

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