Cardano’s price witnessed a significant price drop during the early hours of Sunday along with the altcoin market. While the BTC-induced price drop did bring its trading price all the way down to the $1.04 range, the altcoin has been able to manage a substantial recovery in the past 24 hours.
At the time of writing, ADA was being traded at $1.3 and had a market capitalization of over $41 billion. In the past day’s time, as the coin continues its recovery run, it has also been able to post a marginal 4 percent price hike.
Cardano 4-hour chart
Source: ADA/USD, TradingView
The past few trading sessions have seen the price of ADA come close to reaching a 100 percent recovery. The coin did take the help of the price range at $1.25, as it provided crucial support; it is now on its way toward the resistance range around $1.40 to $1.44. Despite bullish momentum seen in the past 12 hours, sellers seem to now be reentering the market and ADA is losing a bit of upward momentum.
Hence it is a bit too early to determine whether a long or a short position would be more advantageous for traders given the current market conditions. However, if the bearish pressure were to persist, a dip to its immediate support at $1.25 is very likely. Subsequently, a further price drop to $1.18 on the other hand seems unlikely.
Rationale
Technical indicators like MACD indicator have undergone a bearish crossover and may see a trend reversal in the coming 12-24 hours. The signal continues to hover above MACD line and this could result in a short-term correction. RSI indicator occupied the neutral zone but was heading toward the oversold zone, implying a sellers’ market in the short term for ADA.
Conclusion
ADA has been able to limit its losses and drive its prices once again on a steady uptrend and is on the verge of establishing a complete recovery. However, this may have to wait a little while as signs of a price correction are present in the ADA market and its price action may soon be headed once again to the $1.25 range.
