- On Thursday, the ADA/USD is trading with a solid bearish bias at $2.57, losing -8.13% so far.
- The declining prices of ADA/USD could also be attributed to the rising prices of the US dollar.
- Forex trading participants may look for a sell trade below the $2.70 level to the target of $2.49 and $2.40.
On Thursday, the ADA/USD is trading with a solid bearish bias at $2.57, losing -8.13% so far. The day before, the ADA/USD was closed at $2.8323 after reaching a high of $2.9357 and a low of $2.7968. The ADA/USD turned red for Monday and lost some of its previous daily gains despite positive developments surrounding its environment. If you are wondering what to expect and where to buy ADA? Let’s find out below…
Cardano was facing some criticism after the developers tested the launch of smart contracts on their testnet. There were mixed feelings about the upgrade as misconceptions arose about the upgrade. A decentralized exchange, Sundae Swap, posted a report that laid out potential solutions to the issues to clear those misconceptions.
Cardano was flawed as it only allows one transaction per block
The report suggested that Cardano was flawed as it only allows one transaction per block, and only one user can interact with a smart contract per transaction. This issue can be resolved only through centralization. Another solution could be to design a DEX such that it did not require a single liquidity pool or create a hybrid exchange. These adverse developments kept Cardano’s token prices down for the day.
Cardano has recently gained much attraction because of securing the third rank in the cryptocurrency market. It’s rising by about 116% over the past 30 days, and overall it has gained about 2400% in a single year.
According to some crypto analysts, there are increased chances that Cardano will retrace significantly after its epic breakout. Moreover, some analysts were referring to the recent drop in value as a retracement. Analysts have urged investors to remain cautious before entering Cardano’s market as the coin could move in a downward direction.
Stronger US dollar weights on Cardano
The declining prices of ADA/USD could also be attributed to the rising prices of the US dollar. The DXY, which measures the greenback value against the basket of six major currencies, rose to 92.3 and recovered some portion of previous losses, which gave strength to the US dollar and dragged ADA/USD lower as both have a negative correlation.
Cardano Price Prediction – Technical Levels
Support Resistance
2.7775 2.9064
2.7226 2.9806
2.6485 3.0354
Pivot Point: 2.8516
ADA/USD violates upward trendline support at 2.8500 – Where to Buy ADA?
Cardano price prediction is strongly bearish below an intraday pivot point level of 2.8516. On the 2 hour timeframe, the 50 day EMA (Exponential Moving Average – Red Line) extends resistance at 2.910. Since the ADA/USD has crossed below this level, the chances of a bearish trend remain pretty solid.
On the 4 hour chart, the ADA/USD has already violated the triple bottom support level of $2.71 level. For now, this level is working as a resistance for the ADA/USD pair. On the bearish side, continuing a selling trend could drive a selling trend until the 2.49 level.
The ADA/USD has formed a bearish engulfing candle, supporting the solid chances of a selling trend continuation in Cardano. Thus, a breakout of the 2.499 support level could extend the selling trend until the 2.32 and 2.27 levels.
The ADA/USD’s Stochastic RSI indicator has entered the oversold zone, suggesting bears are exhausted. Thus, the failure to break and close below 2.70 could trigger profit-taking in the ADA/USD pair.
Therefore, forex trading participants may look for a sell trade below the $2.70 level to the target of $2.49 and $2.40. Alternatively, we may see buying trades above the $2.4900 level. All the best.
Where to Buy ADA?
You can buy it on eToro. It’s one of the trusted exchange platforms in the crypto space. eToro supports copy trading, which allows new traders to learn from market experts. eToro also charges low trading fees and commissions.
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