Cardano Price Analysis: There has been some serious selling volume but all hope is not lost
- ADA/USD has moved 7% lower on Thursday as a wave of selling pressure hits cryptos.
- There is a good support zone to keep an eye on at the 38.2% retracement.
ADA/USD 1-hour chart
There has been a big amount of selling pressure come through the whole cryptosphere in the late EU, early US session. All of the crypto majors trade in the red while most of the altcoins are down too. ADA/USD was one of the worst-hit, falling as much as 10% at one stage.
The volume indicator also shows there was a large market backing for the move lower and it could be a strong bout of profit-taking after a great run in the coin. Interestingly the price stopped at the 38.2% and 138.2% Fibonacci confluence zone. Not only that, there was also a natural support level confluence at the area.
The Relative Strength Index indicator is also showing an extreme overbought reading so there could be a short term bounce before the trend continues. If this Fib confluence level holds the price could be on its way back up and there is the small matter of the 0.050 psychological support level too.
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Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
