Cardano outperformed the big market leaders with a huge gap in recent earnings that it posted in August 2021. While September got off to a positive start, it soon succumbed to sudden selling pressures on all cryptocurrencies. Last week’s decline shook valuations and fundamental support, but it took the market some time to recover at the same levels.
Cardano ranks third with a 25% drop in market cap. Still, its $ 74 billion ratings are 15% higher than Binance coin, your immediate competitor in terms of market position. Cardano has a circulating supply of 71.17% with a liquidity of just over 32 billion coins.
At a fundamental level, this cryptocurrency looks strong, but there is selling pressure exerted by those who are sitting on huge profits. Unrealized gains should be viewed as the primary reason for an imminent sell-off at this counter.
Cardano price analysis
The profit booking on Cardano has moved it back towards support zones. However, since ADA price is not trading above its immediate resistance levels, it will be important to see how long this support can work before it can no longer withstand the selling pressure. Alternatively, it can be renewed Buying mood for ADA after consolidating in a smaller area for a longer duration. The price action picture is extremely unclear at this point.
Cardano still hasn’t turned negative despite a 24% drop in ratings over the past few days. The price action itself trades above the important swing ranges. In the last few days, exactly after the slump on September 7th, a consolidation range has been developed. This area has upper resistance at $ 2.65 and support at $ 2.40. The further uptrend suggests that a very strong level of resistance was created after ADA failed to break through the $ 3 zones on a closing basis.
But there are several supports in case of a downward move. From its 100- and 200-day moving averages of 1.75 and 1.57 to psychological support at $ 2.00, Cardano even has swing support at $ 1.90. Any price movement between $ 1.90 and $ 2.25 should be viewed as a buying opportunity and one should neglect unusual candle lengths in order to predict future price action on ADA.
As volumes have risen to an all-time high, we are witnessing a falling RSI curve that has swung from 70 to 50. That’s because we only had two positive days in the last seven trading days. At the time of writing this technical analysis, Cardano was trading at $ 2.3961.
Cardano is suffering from a lack of sustained buying sentiment that we saw earlier on its chart. The current price movement is a consolidating movement with a widening gap between the lower and upper trading levels. The RSI is close to oversold zones at lower levels of 25 with the MACD indicator heading for a bullish crossover that will come in parallel with the support movement seen on the charts. Based on our Cardano predictionBuying the bottom trendline and selling the top seems like a good move for smaller trades.