Cardano Price Analysis: ADA drops 30 percent from the previous high, swift reversal to follow?

TL;DR Breakdown

  • Cardano price analysis is bullish today.
  • ADA/USD continued to move lower yesterday.
  • Support was found at $1.20 this morning.

Cardano price analysis is bullish today as we expect swift recovery after further downside was rejected at $1.20. Considering that bulls have pushed ADA/USD above $1.30 over the past hours, we expect a swift retest of upside later today.

Cardano Price Analysis: ADA drops 30 percent from the previous high, swift reversal to follow? 1
Cryptocurrency heat map. Source: Coin360

The cryptocurrency market traded in the red over the last 24 hours. Bitcoin and Ethereum saw a strong decline of 17.62 and 15.76 percent, respectively. Cardano (ADA) saw an even bigger drop as it currently has lost 19 percent for the day.

Cardano price movement in the last 24 hours: Cardano spikes to $1.20, sets strong lower low

ADA/USD traded in a range of $1.21 – $1.67, indicating extreme volatility in the market over the last 24 hours. Trading volume has increased by 13.19 percent, totaling $4.28 billion, while the total market cap trades around $45 billion, ranking the coin in 6th place overall.

ADA/USD 4-hour chart: ADA looking to recover

On the 4-hour chart, we can see the Cardano price quickly pushing higher this morning as bears have finally given up.

Cardano Price Analysis: ADA drops 30 percent from the previous high, reversal to follow?
ADA/USD 4-hour chart. Source: TradingView

Cardano price action has seen strong bearish momentum over the past weeks. After ending November with a new low set around $1.416, ADA/USD saw a recovery at the beginning of the week.

After a quick spike to $1.60, a several-day consolidation followed until further upside was tested on the 2nd of December. A new swing high was set at $1.76, potentially indicating an upcoming major trend reversal forming.

However, Yesterday, the Cardano price saw bearish momentum take over, leading to previous low tested by the end of the day. Overnight, the selloff continued, leading ADA/USD to a lot more downside until the $1.20 mark offered to support this morning.

Cardano Price Analysis: Conclusion 

Cardano price analysis is bullish today as we expect further recovery after further downside was rejected at $1.20. Therefore, ADA/USD will likely move to retest the previous support area as a resistance next. 

While waiting for Cardano to move further, see our articles on the Best Crypto Wallet 2021, Decred Wallet, and Ripple vs SEC.

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