Cardano (ADA) is one of the most popular cryptocurrencies in the market, with a loyal fan base and a strong development team. The project aims to create a scalable, secure, and interoperable platform for smart contracts and decentralized applications. However, despite its ambitious goals and impressive achievements, Cardano has been facing some challenges in the price department lately.
Cardano Price Overview
As of August 5, 2023, Cardano is trading at $0.292, down 0.23% in the last 24 hours and 5.69% in the last week. The coin has a market capitalization of $10.2 billion, making it the eighth-largest cryptocurrency by market cap. The 24-hour trading volume is $188.7 million, indicating a moderate level of interest from traders and investors.
Cardano has been in a downtrend since reaching its all-time high of $3.10 in September 2021, losing more than 90% of its value in less than a year. The coin has been struggling to find a clear direction, oscillating between the $0.28 and $0.32 range for the past month. The coin has failed to break above the $0.32 resistance level several times, indicating a strong selling pressure in the market.
Cardano Price Prediction
To predict the future price of Cardano, we can use some technical indicators and tools, such as trend lines, moving averages, Fibonacci retracement levels, and support and resistance zones. These can help us identify the possible scenarios and targets for Cardano in the short and long term.
In the short term, Cardano is facing a strong resistance at $0.32, which coincides with the 50-day moving average (MA) and the 23.6% Fibonacci retracement level of the downtrend from $3.10 to $0.28. This level has been rejected several times in July and August, suggesting that the bulls are having a hard time pushing the price higher.
On the downside, Cardano has a strong support at $0.28, which coincides with the lower trend line of the descending channel that has been forming since May 2021. This level has been tested several times in June and July, indicating that the bears are having a hard time pushing the price lower.
Therefore, Cardano is likely to continue trading within this channel until either the bulls or the bears gain enough momentum to break out of it. A breakout above $0.32 could signal a bullish reversal and open the door for a rally towards $0.38, which is the next resistance level and the 38.2% Fibonacci retracement level of the downtrend.
Conversely, a breakdown below $0.28 could signal a bearish continuation and open the door for a drop towards $0.24, which is the next support level and the previous low of March 2021.
In the long term, Cardano is still in a bearish trend, as indicated by the lower highs and lower lows on the weekly chart. The coin is also trading below the 200-day MA, which is a major indicator of the long-term trend.
However, there are some signs of hope for Cardano fans, as the coin is showing some bullish divergence on the weekly RSI, which measures the strength of the price movement. This means that while the price is making lower lows, the RSI is making higher lows, indicating that the selling pressure is weakening and that a possible trend reversal could be in the works.
Additionally, Cardano is approaching a critical support zone at $0.20-$0.25, which has acted as both support and resistance in the past. This zone could provide a strong bounce for Cardano if it reaches it, as it did in November 2021 and February 2022.
Therefore, Cardano could have two possible scenarios in the long term:
- A bullish scenario: If Cardano manages to break above $0.32 and confirm it as support, it could start a new uptrend that could take it to $0.38, $0.45, $0.55, and eventually $0.8-$1 by 2025.
- A bearish scenario: If Cardano fails to break above $0.32 and breaks below $0.28 instead, it could continue its downtrend that could take it to $0.24, $0.2-$0.25 zone, and eventually below $0.1 by 2025.
In this article, we have analyzed the current and future price of Cardano, using some technical indicators and tools, such as trend lines, moving averages, Fibonacci retracement levels, and support and resistance zones. We have also considered the market sentiment and the fundamental developments that could affect the price of Cardano.
We hope you enjoyed this article and found it informative and helpful. Please let us know if you have any questions or feedback. Thank you for reading.
This article does not contain any financial advice. NFA. DYOR.