- Cardano price rejected severally at $1.35 as it trades around $1.34.
- ADA pull-back may be temporary before the big push.
- Cardano prediction is bullish as it sits on strong support at the 50-day SMA.
Cardano is currently trading in the red just above the $1.35 support level. Short-term Cardano price prediction is generally bearish before a new upward surge is seen. Therefore, investors should be on the look out for crypto signals that might bolter bulls to push Cardano higher.
Cardano Price Pulls Back To Areas Below $1.35
ADA closed the day on Tuesday trading in the green above the $1.35 resistance level. This after rallying 4.76% from $1.307 on Monday to $1.369 Tuesday and flipping the 100-day Simple Moving Average (SMA) from resistance to support.
Previously, Cardano price action was uneventful as it showed a horizontal price action between July 31 and August 02. During this time, ADA was trapped in a tight range between $1.302 and $1.320 after being rejected repeatedly by the $1.35 resistance level.
On Tuesday, bulls showed up and managed to slice through the $1.35 resistance level. But this rally was short-lived as overhead pressure from the $1.359 resistance level pushed the price back towards the $1.35 support wall.
At the time of writing, ADA is hovering around $1.345 on most crypto exchanges as bears attempt to push the price even lower. Note that if Cardano closes the day below the $1.35 mark, more sell orders will come through pushing the ADA price towards the 1.32 support wall. A further drop could see the Cardano price revisit the 100-day SMA at $1.30 and 50-day SMA at $1.25 respectively.
ADA/USD Daily Chart
The appearance of an evening star candlestick and the downward movement of the Relative Strength Index (RSI) accentuate this bearish thesis.
Cardano Sits On Strong Support Around $1.32
On-chain metrics from In/Out of the Money Around Price (IOMAP) by IntoTheBlocks indicates that ADA is sitting on strong support within the $1.31 and $1.35 investor’s cluster. Within this Cardano price range, roughly 3 billion ADA were previously bought by approximately 166,000 addresses.
Cardano IOMAP Model
Realise that the $1.32 support wall is within this range and coincides with the $100-day SMA. Note that bulls are counting on this support as it is robust enough to counter any selling pressure that might seek to push the ADA price below this point.
A daily closure above the $1.35 mark will re-ignite bull’s enthusiasm to and rally ADA even higher. If this happens, Cardano is likely to reach the $1.36 resistance level. Any further push upwards could see Cardano reach the $1.426 resistance level or even higher towards the 200-day SMA around $1.46. The movement of the MACD above the signal line in the positive region validates this bullish bias.
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Nancy Lubale
