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Cardano has recently made headlines because to the measures it is taking toward the Alonzo upgrade. Alonzo is the first in a series of blockchain improvements that will introduce capabilities like smart contracts to the platform.
While Cardano is already competing with the likes of Ethereum, ADA is yet to respond in favor of the planned improvements due to market corrections.
Cardano daily chart
Earlier this week, Cardano was showing signs of robust rebound on the price charts; but, as the weekend neared, selling pressure increased. As the market rejected the $1.86 resistance level, the value of ADA plummeted below the $1.43 support level.
With selling pressure still on the increase at press time, a move to $1.43 may result in a 10% drop.
Despite aggressive efforts to rebound in a negative market, ADA’s price failed to break through the $1.86 resistance level. The cryptocurrency’s volatility has remained strong, with the Visible Range indicator indicating that the most actively traded range in the current period was $1.30. This level has previously served as support and may be able to save the alts’ dropping price.
The Relative Strength Index, on the other hand, appeared to indicate that the ADA market was moving away from equilibrium as selling pressure increased. The market’s decline might cause the value to fall to $1.30.
Meanwhile, the ADX was above 25, indicating that the recent strength was being sustained and might result in a price swing.
Crucial levels to watch out for
Take Profit: $1.30
Risk to Reward: 2.09
Despite the fact that the first Cardano Alonzo testnet has just recently been established, the market has yet to react to the news. Instead, the bearishness of the Bitcoin market has crept in, and ADA was seeing a severe sell-off for the second day in a row. If this trend continues, the price of ADA might fall below $1.30.