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Cardano (ADA): is a retraction to $ 0.051 inevitable?

Cardano price may fall to levels seen last week

Since the end of April, the eleventh largest cryptocurrency in the world, Cardano (ADA), has enjoyed a tremendous price race. In fact, it appears that the losses that occurred on “Black Thursday” are now a distant nightmare for the cryptocurrency, after its positive price action continued well into May. Despite a drop that represented more than a 20% price loss in the early hours of May 10, Cardano’s price rebounded.


Source: Coinstats

At the time of writing, Cardano was trading for $ 0.55, while recording a market capitalization of $ 1.4 billion. In the past 24 hours, Cardano has also seen a turnover of $ 216 million.

4 hour chart

Cardano (ADA): is a retraction to $ 0.051 inevitable? 25
Source: ADA / USD, TradingView

According to the 4-hour chart, Cardano’s price has been in an ascending channel for more than a week. In this scenario, the price is likely to fall, as well as the expected price break after this formation.

At the moment, Cardano has three crucial support points at $ 0.054, $ 0.051 and $ 0.048. The currency’s trading price was very close to the support at target 1 – $ 0.054 and may come close to that point in the short term. However, target 2 at $ 0.051 and target 3 at $ 0.048 are likely to be Cardano’s destination in terms of price in the coming weeks.

However, if the upward trend continues for a longer period, the price could reach resistance at $ 0.057 in the coming days.

Cardano (ADA): is a retraction to $ 0.051 inevitable? 26
Source: ADA / USD, TradingView

On the 4-hour chart, the MACD indicator had gone through a bearish cross as the signal line moved above the MACD line. In addition, the RSI indicator echoed a similar sentiment, as it was also moving south towards the oversold zone.

Cardano
Source: CoinMetrics

Interestingly, in one year, Cardano’s correlation with the world’s largest cryptocurrency, Bitcoin, was not greater. In the last three months alone, the correlation has increased from 0.62 to almost 0.84.

Cardano’s price is likely to fall over the next few days and will likely go to target 1 by $ 0.054. However, in the next week, the price could fall further to target 2 – $ 0.051, a development that will result in a 7% drop in price.

In an unlikely scenario, Cardano may also move north and continue the upward trend towards target 3. However, the price is likely to fall, as it is a disruption of the upward channel formation.

Source: AMB Crypto

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