Cardano Price Analysis: ADA retraces from $1.90, more downside to be seen later today?

TL;DR Breakdown

• ADA rallied to $1.90 yesterday.
• Further upside could not be reached overnight.
• Cardano is set to retrace lower today.

Cardano price analysis is bearish for the next 24 hours as bulls have lost their momentum after a more than 25 rally earlier this week. Therefore, we expect ADA/USD to retrace some of the gains and attempt to set another higher low later this week.

The cryptocurrency market trades in the red over the last 24 hours. Market leader, Bitcoin is down by 2.4 percent, while Ethereum has lost 2.8 percent. Ripple (XRP) is among the best performers, with a gain of almost 12 percent. 

Cardano price movement in the last 24 hours: Cardano starts to retrace from $1.90

ADA/USD traded in a range of $1.73 – $1.89, indicating a good amount of volatility over the last 24 hours. Trading volume has increased by 39.7 billion and totals $6.55 billion, while the total market capitalization trades around $57.8 billion, resulting in a market rank of 5th place.

ADA/USD 4-hour chart: ADA set for a retracement?

On the 4-hour chart, we can see the Cardano price starting to retrace after failure to move higher overnight.

Cardano price action has traded with a strong bullish momentum over the past weeks. After setting a slightly higher low around $1.02, ADA/USD started to rapidly advance until the previous major swing high of $1.90 was reached yesterday.

Over the last two days, Cardano advanced extremely fast, which should be met with an equally strong retracement over the next days. The $1.90 previous high should offer enough resistance to reverse the market and set a strong retracement.

Therefore, we expect ADA/USD to retrace some of the gain seen earlier this week and try to retest the $1.60 previous resistance as support. Once a higher low is set, Cardano price should resume its rally and look to test the $2 mark next week.

Cardano Price Analysis: Conclusion 

Cardano price analysis indicates bearish momentum to follow over the next 24 hours as bulls have lost their momentum after reaching the $1.90 mark yesterday. Therefore, we expect ADA/USD to decline in price over the following days, with the first support level located around the $1.60 mark. 

While waiting for Litecoin to move further, read our articles on Bitcoin Futures, Physical Bitcoin, as well as Proof of Stake vs Proof of Work.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Source: https://www.cryptopolitan.com/cardano-price-analysis-2021-08-12/