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Cardano’s tech improvements have given it a significant boost: the platform will be introducing smart contracts capabilities to the blockchain. ADA has reaped the advantages of these changes, reaching a high of $2.51 in May. This spike, however, was short-lived as the crypto market began to reverse. ADA was trading 35% lower than its all-time high of $1.50.
Cardano hourly chart
The downward volatility that began with Bitcoin has prompted the remaining alts to lose value as well. The short-term outlook for ADA looks increasingly negative and erratic.
Despite the fact that ADA attempted to break over several levels of resistance from its low point, selling pressure took control and pushed the value back down. This has happened twice recently, and with each push back, the price has stabilised at a position higher than where the rebound began. This is obvious in the graph.
Could this imply that another correction was on the way?
The Fibonacci retracement levels have identified significant resistances for ADA’s ascension. Its price rose to $1.59 before plummeting to $1.49 due to a rapid drop. This was the 23.60 percent Fib level, which traders supported. The price failed the second time it tested resistance, but it did so at 38.20 percent of the Fibonacci ratio. This revealed a general upward tendency in the value of ADA, with constant adjustment.
This price trend indicated that ADA was now in a boom and correction period. As long as the price is under pressure, it might fall below $1.49 as a support level. The RSI indicated that purchasing pressure was increasing, while the Aroon indicator indicated that bearishness was decreasing in the market.
Take profit: $1.49
Risk and Reward: 1.6
If ADA maintains its current price trend, it may see another decline in the near future. With selling pressure continuing low, ADA may be preparing to re-test resistance. If the asset fails to reach this level, the price may fall again. Nonetheless, breaking through the barrier might result in a trend reversal in the ADA market.