- Cardano is gaining immediate support at the $2.35 level amid a symmetrical triangle pattern.
- The day before, ADA/USD was closed at $2.5025 after placing a high of $2.5811 and a low of $2.3643.
- Forex trading participants may look for a sell trade below the $2.48 level to the target of $2.22 and $2.10.
The ADA/USD closed at $2.5025 after reaching a high of $2.5811 and a low of $2.3643. ADA/USD reversed its course on Wednesday after declining for three consecutive sessions. The latest comeback by Cardano could be due to the highly anticipated Alonzo upgrade, as it has become the talk of the town for days. Cardano is gaining immediate support at the $2.35 level amid a symmetrical triangle pattern.
According to the developers, the upgrade will bring programmability to the blockchain. It seems like the promises were true, as Alonzo has already processed more than 100 smart contracts on the platform within its first 24 hours.
Cardano, which has recently secured the third position in the entire cryptocurrency market concerning its market cap, has continuously provided the industry with the best blockchain solutions. The successful launch of the Alonzo upgrade has pushed its prices higher across the board.
Developers are now exposed to limitless possibilities with the exposure to building dApps on the blockchain. However, some drawbacks include the relatively high costs and energy inefficiency associated with the platform, making it inaccessible to some developers.
Charles Hoskinsons’ Remarks on Alonzo Upgrade
According to the CEO of Cardano, Charles Hoskinsons, the Alonzo upgrade was the culmination of six years of incredibly hard work with some of the brightest minds in the blockchain and beyond.
Apart from Alonzo’s successful launch, the Swiss digital assets framework leader, Taurus, has announced that it has efficiently integrated the Cardano blockchain, which added further strength to the ADA/USD.
The Swiss-based firm said that the integration of Cardano was done due to increased demand for a battle-tested Proof-of-stake blockchain protocol by the institutions. This news added further optimism to the ecosystem of ADA/USD and pushed its prices higher across the board.
Furthermore, the declining price of the US dollar added further gains in ADA/USD as both have a negative correlation. On Wednesday, the DXY was down to 92.42 as investors were cautious ahead of next week’s September monetary policy meeting.
Cardano Price Prediction – Technical Levels
Support Resistance
2.3843 2.6011
2.2659 2.6995
2.1675 2.8179
Pivot Point: 2.4827
ADA/USD Steady at $2.45 amid symmetrical triangle pattern
Cardano’s price prediction seems neutral as the pair is tossing above and below the 50 period EMA line of $2.39. On the 4-hour timeframe, the ADA/USD has completed a 61.8% Fibonacci retracement at $2.58 and slipped right after to trade at the $2.36 level.
The ADA/USD is currently is likely to face substantial resistance at 2.48 and 2.59 levels, extended by 50% and 61.8% Fibonacci correction levels, respectively.
A $2.60 resistance level breakout can trigger a buying trend until the $2.79 resistance level on the bullish front. However, the closing of candles above the 50 days EMA (Exponential Moving Average – Red Line) supports a buying trend in ADA/USD.
The pair is expected to find paramount support at $2.30 and $2.2343 levels on the bearish front. Moreover, on the lower side, the subsequent support will prevail near the $2.011 level. The ADA/USD’s Stochastic RSI indicator has started coming out of an overbought zone, suggesting possibilities of a bearish correction in the pair. Consequently, the investor’s focus will stay on the $2.48 level, as below this; the ADA may display a bearish bias and vice versa.
Forex trading participants may look for a sell trade below the $2.48 level to the target of $2.22 and $2.10. Alternatively, we may see buying trades above the $2.50 level. All the best.
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