- On Wednesday, the ADA/USD is trading with a solid bearish bias at $2.35, losing -5.19% so far.
- With a market cap of $82.8 billion, the third-largest cryptocurrency has been facing much criticism lately.
- Forex trading participants may look for a sell trade below the $2.47 level to the target of $2.25 and $1.91.
On Wednesday, the ADA/USD is trading with a solid bearish bias at $2.35, losing -5.19% so far. The day before, the ADA/USD was closed at $2.5047 after reaching a high of $2.8747 and a low of $2.0316. The ADA/USD dropped sharply to its lowest level since August 18th, at $2.03, amid a recent crash in Bitcoin prices. Moreover, some negative developments surrounding Cardano’s network are keeping the pair bearish. If you are wondering what to expect and where to buy ADA? Let’s find out below…
ADA/USD is backed by Plutus smart contract functionality.
Since last Thursday, when the development company behind Cardano, Input-Output, announced the launch of the Plutus smart contract functionality on testnet, the first decentralised exchange Minswap has run into severe scaling issues. It’s elevating concerns about Cardano’s capability to run smart contracts.
With a market cap of $82.8 billion, the third-largest cryptocurrency has been facing much criticism lately. Its ecosystem infrastructure could not allow most basic decentralised apps to function without immediate scaling issues. The surprising fact that users found out was that the dApp could only handle one transaction per block, which weighed heavily on the ADA/USD prices.
El Salvador Causes a Crash in the Crypto World
The recent flash crash in Bitcoin prices added further pressure on the prices of ADA/USD. There was no reason behind the recent BTC/USD price crash. However, massive liquidations took place on Tuesday, Bitcoin Day in El Salvador.
It is expected that the liquidation positions were mostly long positions, and profit booking from major BTC holders added heavy pressure to its prices, which also turned the whole market mood negative, which added to the declining prices of ADA/USD.
On the flip side, Input-Output Global has announced the long-awaited mainnet launch for the Cardano smart contract platform, Plutus. The date for the launch has been confirmed for next Sunday, September 12th. The company has said that Plutus will deploy the unique HFC technology to integrate into Cardano. This news limited the sudden sell-off in ADA/USD on Tuesday.
Cardano Price Prediction – Technical Levels
Support Resistance
2.0659 2.9090
1.6271 3.3135
1.2227 3.7522
Pivot Point: 2.4703
ADA/USD violates upward trendline support at 2.7300 – Where to Buy ADA?
Cardano price prediction is strongly bearish below an intraday pivot point level of 2.4703. On the 2 hour timeframe, the 50 day EMA (Exponential Moving Average – Red Line) extends resistance at 2.73. Since the ADA/USD has crossed beneath this mark, the possibilities of a bearish trend remain pretty firm.
On the 4 hour chart, the ADA/USD is gaining immediate support at the $2.25 level. The breakout below the $2.25 level could lead the ADA/USD price towards the next support area of the 1.9169 level.
The ADA/USD has formed a bearish engulfing candle, supporting the solid chances of a selling trend continuation in Cardano. Thus, the 2.25 support level breakout could extend the selling trend until the 2.25 and 1.91 levels.
The ADA/USD’s Stochastic RSI indicator has entered the sell zone, suggesting chances of a bearish trend continuation. Therefore, the investor’s focus will stay on the 2.47 level, as below this; the ADA may exhibit a bearish bias and vice versa.
Forex trading participants may look for a sell trade below the $2.47 level to the target of $2.25 and $1.91. Alternatively, we may see buying trades above the $2.47 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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