Share:
  • Cardano price closed April 23 with a hammer candlestick pattern, but yesterday’s breakout failed.
  • Weekly Relative Strength Index (RSI) has triggered a head-and-shoulders top pattern.
  • According to Hoskinson, high probability of crypto regulations in the consumer protection section of the new tax bill.

Cardano price in two weeks has declined over 40% from top to bottom and looks for some clarity as it battles with long and short-term support. Amid the indecision is a neutral outlook for the digital token, waiting for today’s close.

Cardano price bulls hoping for burst of price strength

In an interesting twist, Canada has quietly introduced a regulatory framework on Bitcoin ETFs. In contrast, the United States has been slow at addressing the issue, putting pressure on the new administration to introduce a new regulatory framework.

It is believed that the Joe Biden administration is in the initial stages of developing a regulatory framework that would address asset classification, security law, and the responsibilities of entities.

Charles Hoskinson, the co-founder of IOHK, the developer of the Cardano blockchain platform, has articulated his belief that the upcoming tax bill will introduce crypto regulations in the area of consumer protection. He said that the explosive price action in the cryptocurrency complex over the last year underpinned by the revolution in NFTs and decentralized finance (DeFi) had created a perception of Ponzi-like trading that is finally being highly scrutinized by regulatory agencies.

Whenever market patterns like that emerge, it becomes essential for the regulators to get involved. The free markets can’t be trusted, so regulators need to be hands-on and regulate the space.

He went on to say that the global financial system was cancerous, and if it were human, it would be terminal because investors’ expectations are unrealistic. The result is an elevated level of irrational thinking and decisions.

Cardano price has discovered support at the 10-week simple moving average (SMA) on a weekly closing basis since the beginning of November 2020. Still, this week it is on pace to close below the moving average, raising the odds of a deeper correction for ADA.

Currently, the 10-week SMA is at $1.184, and the price is 4% below the moving average at $1.139. A failure to close above the critical threshold would put ADA on course to test the 100-day SMA at $.972, the April 23 low of $0.892, and potentially the 38.2% Fibonacci retracement of the 2021 rally at $0.703. 

Adding to the downside pressure is the breakdown of the weekly RSI from a head-and-shoulders pattern this week.

ADA/USD weekly chart

ADA/USD weekly chart

If ADA musters the impulsiveness to close above the 10-week SMA today, it will keep the long-term trend intact. A close above the April 23 hammer high at $1.192 and the 50-day SMA at $1.204 should release a rebound to the lower trend line of the symmetrical triangle at $1.307.

Following a close above the trend line, ADA should be poised to attack the all-time high recently printed at $1.570 with some resistance interrupting the rally at the 2018 high of $1.404. 


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Dogecoin Price Prediction: DOGE refuses to let WIF have all the fun

Dogecoin Price Prediction: DOGE refuses to let WIF have all the fun

Dogecoin is leading meme coins north, even though Dogwifhat is outperforming it. With DOGE defending the gains, the upside potential remains alive and the meme coin could reclaim its March 2 peak. If Dogecoin price loses the $0.1356 support, it could weaken the bullish thesis, paving the way for an extended fall.

More Dogecoin News

Celo price confirms breakout after CELO L2 migration details

Celo price confirms breakout after CELO L2 migration details

Celo price broke out 15% on March 1, when the network executed its migration to Layer 2. CELO continues to hold above $1.1172, increasing the odds for a further upside. A break and close below $1.1022 would produce a lower low, provoking a continued drop.

More Celo News

Ethereum Price Prediction: The long game could see ETH climb 30%

Ethereum Price Prediction: The long game could see ETH climb 30%

Ethereum price has defended its range low of $884.51 since early 2021 while the $4,485.32 peak capped the upside. If ETH manages to close above $3,602.43, it could catalyze a continuation to the January 2021 peak. A break and close below the midrange of the channel at $2,684.92 would invalidate the bullish thesis.

More Ethereum News

GMX price could make a 50% climb as GMX’s daily chart is governed by a bullish pattern

GMX price could make a 50% climb as GMX’s daily chart is governed by a bullish pattern

GMX price has formed an inverse head and shoulder pattern on the daily timeframe. GMX could make a 49% climb if the price manages a daily candlestick close above $59.64 bullish. A break and close below $50.00 would invalidate the bullish thesis.

More GMX News

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin: BTC likely to correct to $50,000 soon

Bitcoin price has formed a potential top signal that forecasts a sell-off. The weekly chart also points to a bearish divergence, which adds credence to the bearish outlook. 

Read full analysis

BTC

ETH

XRP