Cardano Value Prediction: Bearish Momentum Frustrates ADA Bulls – InvestingCube
Cardano price continues to consolidate around $ 1.50 after not breaking up. Tech specs suggest it might get cheaper in the near future.
Cardano last traded at $ 1.5068, down 0.033 (-2.14%)
ADA is currently the fifth largest crypto asset with a market capitalization of $ 48 billion.
Cardano is a decentralized proof-of-stake (PoS) blockchain that competes with Ethereum. Cardano was founded by Charles Hopkins, who was also a co-founder of the Ethereum network.
The proof-of-stake consumes significantly less energy than the proof-of-work (PoW) consensus of Bitcoin and Ethereum. The Ethereum network is in the transition from PoW to PoS. Scaling solutions will further improve the energy efficiency of Ethererum. For now, however, ADA has the advantage.
NBC News recently named Cardano “the most significant evidence of stake cryptocurrency on the market.”
Cardano price has outperformed most of the rest of the world during the recent volatility of cryptocurrencies. While ADA is 40% below its May all-time high of $ 2.5147, it’s still up over 800% since the start of the year.
ADA technical outlook
The 4-hour chart clearly shows that ADA was struggling to break trendline resistance. The trend from the May high is currently around $ 1.6000.
Previous attempts at trend resistance have failed, so this is an important level.
The MACD indicator is negative over the 4 hour timeframe, suggesting that the momentum has turned bearish. In addition, the relative strength indicator shows a decreasing divergence.
This suggests a deterioration in the upward momentum, suggesting that the price could trade lower in the short term.
The market should find support between $ 1.3350 (May 29th low) and $ 1.4000 (June 8th low).
However, ADA will reverse this bearish sentiment if price trades above trendline resistance,
I remain optimistic and agree with my colleague, Crispus Nyaga, who highlighted ADA’s positive long-term outlook in his report yesterday.
However, bulls may get a better entry point in the next day or two.
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Cardano price 4 hour chart
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