After reaching its historic high recently, Cardano (ADA) has undergone a strong correction and is now looking to recover to take on new flights
Cardano saw a huge price drop last week as the cryptocurrency fell 58% from its peak price by $ 2.51. After yesterday’s bloodbath, the ADA’s lowest point was seen at $ 1.23. It had remained at the $ 1.40 price level for most of May, but as selling pressure increased, the value plummeted below that level.
At the time of writing, the ADA was trading at $ 1.49 and is currently in the balance zone.
Cardano [ADA] – Daily chart
Source: ADAUSD no TradingView
Cardano’s attached chart depicted the rapid price increase from $ 1.30 to $ 2.51 in an upward channel. However, the price of alt has fallen on this vast channel consecutively for three days. After some midweek recovery, the ADA price failed to exceed the resistance level by $ 1.80 and once again went down. This decline lasted for three days, with the price falling back to date.
As the price continues to decline, there is a possibility that the digital asset will consolidate.
The price has moved over the $ 1.47 price range, a level that was acting as resistance at the time of writing. Although the price is close to this level, the volume is not yet high. The visible range indicator suggested that traders were not very interested in the current price and the next strong support from traders was offered at $ 1.22.
If the price falls below the 50 moving average, there may be greater chances of consolidation between $ 1.47 and $ 1.30. However, an increase in selling pressure could quickly push the price to $ 1.22 – a favorable trading level.
The Cardano market appeared to be recovering from a bloody week so far. The blockchain is gearing up for the Alonzo hard fork, which should allow developers to build smart contracts at Cardano, and community support will be crucial, especially to stabilize the volatile market. With the necessary support, the ADA price could trade between $ 1.30 and $ 1.47 for some time.