Cardano, like most of the crypto market, suffered a strong correction with the fall in Bitcoin over the weekend
Cardano’s price witnessed a significant drop during the early hours of Sunday, along with the altcoin market. Although the BTC-induced price drop has reduced its trading price to the $ 1.04 range, altcoin has been able to manage a substantial recovery in the past 24 hours.
At the time of writing, the ADA was trading at $ 1.3 and had a market capitalization of more than $ 41 billion. In the past few days, as the currency continues its recovery race, it has also managed to register a marginal price increase of 4 percent.
Cardano 4 hour chart
Source: ADA / USD, TradingView
In the last trading sessions, the ADA price has approached a 100% recovery. The currency had the help of the $ 1.25 price range, as it provided crucial support; it is now on its way to a resistance range around $ 1.40 to $ 1.44. Despite the bullish momentum seen in the past 12 hours, sellers now appear to be entering the market again and the ADA is losing some of the bullish momentum.
Therefore, it is a little early to determine whether a long or short position would be more advantageous for traders, given the current market conditions. However, if downward pressure persists, a fall in its immediate support at $ 1.25 is very likely. Subsequently, a further price drop to $ 1.18, on the other hand, seems unlikely.
Technical indicators such as the MACD indicator have experienced a bearish cross and may see a trend reversal in the next 12-24 hours. The signal continues to hover above the MACD line and this may result in a short-term correction. The RSI indicator occupied the neutral zone, but was moving towards the oversold zone, which implies a seller’s market in the short term for the ADA.
The ADA was able to limit its losses and boost its prices once again in a steady upward trend and is about to establish a full recovery. However, this may have to wait a while, as the signs of a price correction are present in the ADA market and its price action may soon be moving back into the $ 1.25 range.