Cardano price analysis: ADA breaks consolidation, drops to $0.83

TL;DR Breakdown

• Cardano price analysis is bullish today.
• ADA/USD saw more consolidation yesterday.
• Spike below $0.92 seen overnight.

Cardano price analysis is bullish today as we have seen a clear break below previous consolidation and a strong lower low set at $0.87. Therefore, ADA/USD should regain some of the loss over the next 24 hours and retest the $0.92 previous support as resistance.

The market has moved in the red over the last 24 hours as strong selling pressure was seen overnight. The leaders, Bitcoin and Ethereum, declined by 2.18 and 3.45 percent, while Cardano had a more substantial 5.18 percent loss.

Cardano price movement in the last 24 hours: Cardano sets another lower local low

ADA/USD traded in a range of $0.8777 to $0.9615, indicating strong volatility over the last 24 hours. Trading volume has spiked by 109.83 percent, totaling 955.9 million, while the total market cap trades at $30.41 billion, ranking the coin in 8th place overall.

ADA/USD 4-hour chart: ADA looks to retrace?

On the 4-hour chart, we can see the Cardano price action moving higher over the last hours as sellers are exhausted after a strong selloff overnight.

Cardano price action has seen consolidation for most of the last week above the $0.92 support. The calm trading resulted from the previous rapid decline from the last local high at $0.164, indicating strong bearish momentum overall.

The consolidation continued until the second half of yesterday when another attempt to break lower followed. This time bears were successful, quickly leading ADA/USD to a new several-week low at 0.87.

Since then, selling pressure has diminished. Slight reaction have already been set over the last hours, indicating that the Cardano price will likely retrace over the next 24 hours.

Cardano price analysis: Conclusion 

Cardano price analysis is bullish today as the market has started to retrace after a strong drop overnight. Likely the $0.92 previous support will be retested as resistance before another lower local high is set.

While waiting for Cardano to move further, see our articles on Web3 Startups, Staking Enjin Coin, and Where to buy XRP.