In December 2017, the Cardano price reached lows close to 600 satoshis. A rapid upward move ensued, and highs above 9000 satoshis were reached the following month. A downward move followed, which is still ongoing.
At the time of writing, the Cardano price was trading near 800 satoshis, close to the lows reached prior to the upward move in Dec 2017.
Will the ADA price act in a similar manner again? Below, we are going to analyze the price of ADA in different time-frames alongside technical indicators in order to answer that question.
For our previous analysis, click here.
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Cardano Price: Trends and Highlights for June 2
- ADA/BTC is trading inside a short-term ascending channel.
- It is facing resistance from the daily moving averages.
- The weekly moving averages have made a bearish cross.
- There is bullish divergence developing in the RSI and the MACD.
- There is resistance near 820 and 910 satoshis.
Cardano Price in an Ascending Channel
Since reaching lows of 715 satoshis on June 28, the ADA price has been increasing, trading inside the ascending channel outlined below:
The increase has been gradual, with both the resistance and support lines being touched several times.
There is a significant resistance area near 820 satoshis.
If the Cardano price continues to increase at the rate predicted by the channel, it is likely to reach this area on July 3.
Moving Averages
The price of ADA is analyzed alongside the 10-, 20-, 100-, and 200-day moving averages (MA) in the first graph, and the 10-, and 20- week moving averages in the second.
On March 21, the 100-day MA crossed above the 200-day one. This is known as a bullish cross. Due to the length of the MAs, it is a long-term cross.
This cross preceded the upward move which caused the ADA price to reach a high of 1944 satoshis on Apr 3.
However, a decrease ensued shortly after. The same MAs are now close to making a bearish cross.
On June 19, the relatively short-term 10- and 20-day moving averages made a bearish cross.
Afterwards, the 10-day MA provided close resistance to the price. It has done so on several occasions, most recently on July 3, when it initiated a drop of almost 5%, from 815 to 775 satoshis.
The weekly moving averages give a similar outlook.
A bearish cross between the 10- and 20- week moving averages transpired on June 1.
It preceded the most recent downward move. During this move, it has provided very close resistance to the Cardano price.
An analysis of moving averages indicates that the price is likely still in a downtrend.
Possible Reversal
However, a look at the RSI and the MACD shows that the price may shortly begin an upward move and break out from the downtrend.
A significant bullish divergence has developed in both indicators since May 13.
This was especially visible after the creation of the low on June 28.
If the ADA price begins an upward move and breaks out from the resistance outlined in the first section, it is likely to face resistance near 910 satoshis.
This level acted as support during the lows of May 13, and afterwards as resistance on June 19-23.
Summary
The price of Cardano is currently very close to reaching an all-time low price. An analysis of moving averages shows that the price is firmly entrenched inside a downtrend. However, momentum indicators show that the price might soon begin an upward move and reach the resistance area outlined above. Do you think the price of Cardano will begin an upward move? Let us know in the comments below.Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile. Images are courtesy of Shutterstock, TradingView.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
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