Cardano Price Analysis: ADA/USD regains ground after sharp sell-off, further recovery is limited
- Cardano (ADA) settled above $0.1200 after a sharp sell-off.
- The further recovery is limited by 1-hour SMA50.
Cardano (ADA) lost over 6.5% of its value on Thursday as the cryptocurrency market moved into red territory. At the time of writing, ADA/USD is changing hands at $0.1228 after a short-lived move to $0.1181. Cardano takes the 7th place in the global cryptocurrency rating with the current market capitalization of $3.15 billion and an average daily trading volume of $350 million. The coin has gained nearly 270% and left behind Bitcoin and other major altcoins.
ADA/USD: Technical picture
As we have previously reported, a sustainable move below $0.1300 worsened the technical picture and made ADA vulnerable to further losses. However, today's momentum proves that the coin is well supported by $0.1200 as all attempts to push the price below this barrier are heavily bought. However, we will need to see a sustainable move the local resistance of $0.1250 (1-hour SMA50) to mitigate the bearish pressure and confirm the recovery. The ultimate bullish goal is $0.1300.
On the downside, once $0.1200 is broken, the sell-off is likely to gain traction with the next focus on the intraday low of $0.1174 and psychological $0.1100 reinforced by 1-hour SMA100.
ADA/USD 1-hour chart
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Author
Tanya Abrosimova
Independent Analyst
