• Cardano price continues to trade in a declining wedge.
  • The 33% correction has been on below-average volume.
  • A move below $0.84 would lead to a decline to $0.40.

Cardano price has retraced by roughly 30% after the February 27 peak of $1.48. Now, ADA could be preparing to bounce off a crucial support level as institutional investors gain exposure to this cryptocurrency.

ADA makes it to the Bloomberg terminal

Bloomberg announced that it will add ADA to its terminal giving institutional investors exposure to the peer-reviewed blockchain project. However, the listing is only using the definition, not the price information. 

The announcement has not proved to be a positive catalyst for Cardano price today, but it is a step in the right direction for the altcoin. 

It comes just days after Galaxy Digital CEO Mike Novogratz asked his Twitter followers to make a bullish case to own ADA. 

With a more extensive institutional following generated by the Bloomberg listing, the answer for some investors may now be more bullish.

Cardano price correction is almost over

As Bitcoin and Ethereum print new all-time highs, Cardano price has continued to drift lower in a three-week declining wedge, a classic consolidation within the prevailing trend. The volume profile during the correction has been well below average, supporting the bullish thesis.

A bullish resolution to the formation will first find some resistance at the upper trendline, currently at $1.12, followed by the 50 four-hour simple moving average (SMA) and 100 SMA. 

A notable point of resistance emerges around $1.20, an area of price congestion going back to February 20. A breakout from there will put Cardano price on the path to test the all-time high at $1.49 in the coming weeks. 

ADA/USD 4-hour chart

If the pattern resolves to the downside, the first significant support is at the 50-day SMA ($0.87), but the most critical support is the February 23 low at $0.84. 

A failure to hold firm would signal that ADA is in the early stages of a much larger decline.

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.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

MATIC continues to march higher with $3 in sight

MATIC price action has certainly been some of the most dramatic post flash crash. Multiple vigorous attempts by short-sellers to push MATIC lower have all failed and have led to MATIC pushing towards new all-time highs. MATIC price action, in case you ...

More Polygon news

Dogecoin bears leave the scene as DOGE rises towards $0.24

Dogecoin price holds steady near the $0.18 value area, halting any further downside movement. Buyers appear to be showing up and preparing Dogecoin for a big launch higher. Explosive bullish entry present on the Point and Figure chart.

More Dogecoin news

XRP constricts before breaking out to $1

XRP price, like almost every other cryptocurrency, showed strong signs of recovery after the shock of this past Saturday’s flash crash wore off. The past three days of congestion after a strong rally from the lows may begin a new uptrend for XRP.

More Ripple news

Ethereum in a pennant, with bullish breakout as tailwinds reemerge

Ethereum (ETH) price has formed a pennant that quit rapidly after the big sell-off during the weekend. Between $4,646 and $4,060, the price ranges from lower highs and higher lows.

More Ethereum news

The bull and the bear case for BTC

Bitcoin price saw a recent bullish impulse that faced massive headwinds before it tagged a crucial psychological barrier. With directional bias and choppy price action, BTC is likely to experience massive volatility as the situation resolves over time. 

Read full analysis

BTC

ETH

XRP