Cardano Price Analysis: ADA/USD sharply retraces to $2.5 on the 4-hour chart

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  • Our 24-hour Cardano price analysis is bullish 
  • ADA/USD dropped sharply on the 1-hour chart to $2.569
  • Cardano is holding support at $2.600

Our 24-hour Cardano price analysis is bullish after the market reversed to a daily high of $2.87 and respected the $2.50 support over the previous 24 hours. We are therefore anticipating another rally in the course of the day, but there must be a slight retracement before building momentum for further upsides. However, we observed a sharp decline on the hourly chart at the writing of this, which saw Cardano(ADA) rapidly drop by 5 percent from $2.87 to $2.568.

Cardano price analysis
Cryptocurrency heat map. Source: Coin360

The general cryptocurrency market is trending within the green zone on the daily cryptocurrency heatmap by Coin360. Bitcoin went up by 1.50 percent to $52K, Solana gained 32 percent and hit the $190 level while XRP gained 2.22 percent to reach $1.35. 

Cardano price movement in the last 24 hours: ADA/USD retraces to $2.568, strong $2.5 support prevents further downsides

The 24-hour Cardano price analysis candlesticks recorded a broad daily range from $2.568 – $2.875, hence suggesting high volatility. Cardano’s total trading volume increased by 23 percent and totals $5.6 billion. On the other hand, Coin Market Cap recorded a total market capitalization of $86 billion and ranked the scalability solution token at position #3. 

ADA/USD 4-hour chart: ADA set to rally?

On the 4-hour Cardano price analysis chart,  Cardano price action is seen attempting to build a support base around $2.700, which could result in a rally later on today.  

Cardano Price Analysis: ADA/USD sharply retraces to $2.5 on the 4-hour chart 1
ADA/USD 4-hour chart. Source: TradingView

Generally, Cardano’s price action is developing from a significant rally that took place early in August following an advance from $1.02 to $2.90. A rally representing approximately 200 percent in the course of 3-weeks. 

From this point, the bulls got exhausted and lost momentum to push higher above the $3 mark, with the $2.9 level acting as a huge resistance level. In fact, the coin was quickly advancing into the $2.9 region early this morning, when it met massive rejection and dropped sharply to $2.568. 

Cardano Price Analysis: Conclusion 

Today’s Cardano price analysis is signaling a strong bullish uptrend in the upcoming 24-hours with respect to the strong $2.600 support base. From the current market price of $2.709, we are expecting Cardano to move higher and overcome the $2.9 resistance. Thereby raising chances of breaking above $3. Check our long-term price forecast for Cardano between 2021 – 2025 and figure out where the coin could be heading to. 

Source: cryptopolitan.com

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