- Cardano awaits a sustained move above the $3 threshold.
- Daily technical setup remains in favor of ADA bulls.
- 61.8% Fibonacci level at $2.389 is the level to beat for Cardano bears.
Having faced rejection once again at $2.96, Cardano price is feeling the pull of gravity, as it drops to near $2.80, down about 4% on the day.
ADA/USD jumped back towards the all-time highs of $3.026 on Friday, although it appears that the bulls are likely to take a few more attempts before resuming the broader uptrend.
Cardano’s corrective downside could likely be envisioned as short-lived, as the underlying bullish momentum remains intact heading into the September 12 Alonzo hardfork.
The third most favorite crypto coin is up 14% over the week, set to book the sixth straight weekly gain.
ADA/USD pulls back to initiate a fresh upswing
After Monday’s record rally, a brief retracement in ADA price was well expected by the market participant before the bulls contemplate the next upswing to conquer fresh lifetime highs.
Looking at Cardano’s daily sticks, the corrective decline has been encountering strong demand at the 61.8% Fibonacci (Fib) Retracement level of a fresh rally from August 9 lows at $1.362 to the record highs, which is seen at $2.389.
Therefore, a daily closing below the latter is likely to provide credence to the reversal from higher levels, exposing a powerful support area around the $2.19-$2.15 region, the confluence of the bullish 21-Daily Moving Average (DMA) and 50% Fib level.
Although, initial support is now marked at the 78.6% Fib level of the same advance at $2.668.
ADA/USD: Daily chart
Note that the daily RSI retracement from the overbought region, now at 69.03, suggests that the retreat could likely be a good buying opportunity, as ADA price remains on the track to set new bullish targets.
Should ADA bulls take out the record highs at $3.026 the next relevant hurdle is seen at the 127.2% Fib level at $3.477.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple Price Prediction: XRP bulls hold steady, eyeing $3.00
Ripple’s price trades broadly stable at around $2.60 on Wednesday, upholding the recent bullish trend as crypto markets cheer amid improved sentiment. An increase in exposure to XRP among the whales, especially those holding more than 10 million XRP, could accelerate the rally.
Bonk Price Forecast: Breakout from bullish pattern projects a 60% surge
Bonk price consolidates gains of around $0.000023 on Wednesday after breaking out of a cup and handle pattern. The technical breakout, eyeing almost a 60% increase to $0.000034, is part of a broader bullish wave in the cryptocurrency market, accentuated by high risk-on sentiment.
Bitcoin retreats as focus turns to Ukraine-Russia peace talks
Bitcoin price stabilizes near $103,500 on Wednesday after repeated rejections at the $105,000 resistance over the past four days. Ukraine-Russia negotiations in Istanbul this week could act as a bullish catalyst for risk assets, including BTC, if talks bear fruit.
Monero market cap surpasses Pepe’s after hitting four-year high
Monero price extends its gains for a seventh consecutive day on Wednesday, trading above $340 for the first time since August 2021. With the latest price rally, the privacy-focused cryptocurrency's market capitalization has reached $6.43 billion, overtaking that of popular meme coinPepe.
Bitcoin: BTC bulls aim for $105,000 after nearly 10% weekly gains
Bitcoin price stabilizes around $103,000 on Friday after rallying nearly 10% this week. Risk-on sentiment prevails as Trump announced a trade deal with the UK and ahead of the meeting with China this weekend.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.