The ADA price has entered a range just below a critical resistance level, which has pushed its price down over the past three weeks. More node operators migrated to v9.1.0, bringing the total to 79%. Overall, the Cardano price has increased over the past 24 hours, possibly due to the Elon-Trump interview that was highly anticipated by the entire crypto community.
ADA price under pressure, bulls still optimistic
The price of ADA rose to $0.337 early Tuesday morning and the total cryptocurrency market capitalization rose by 1.8%, possibly due to Elon Musk’s interview with Donald Trump.
Meanwhile, the Cardano community is still awaiting the Chang hard fork as 79% of node operators have migrated to the new version 9.1.0.
🚨UPDATE: #Cardano Node version 9.1.0 = 79% #ChangHardFork https://t.co/7axFUfrJ2p pic.twitter.com/uoGOXQsH5N
— Cardano Feed ($ADA) (@CardanoFeed) 11 August 2024
However, analysis of the Cardano price chart shows that these developments may not provide enough momentum for the strong downward pressure on the asset.
Cardano price struggles to break free
According to Cardano technical analysis, the price is currently bearish in the short term as it recently broke out of a rising wedge pattern. This breakdown indicates further potential downside.
The breakdown of the rising wedge is significant. The measured movement from the height of the wedge suggests a possible further decline to around $0.048, bringing the ADA price target to around $0.280.
Cardano price is trading below the 50-day EMA ($0.345) and the 200-day EMA ($0.378), which is strengthening the bearish trend. Moreover, the 50-day EMA is below the 200-day EMA, which is often considered a bearish sign.
Cardano is facing some resistance near the 50-day EMA and the 200-day EMA, with support levels near $0.28 and near $0.25, where the previous consolidation took place.
The Relative Strength Index (RSI) is near the oversold zone at 40.42, suggesting that while bearish momentum is strong, the asset could be approaching an area where buyers could step in.
Furthermore, the Chaikin Money Flow is at -0.14, indicating that more capital is flowing out of ADA than in, which is consistent with the current bearish sentiment.
If the ADA price rises and stays above the range, it could be a sign of increasing market strength, which would invalidate the current bearish thesis. ADA would rise to $0.376 and higher to $0.42.
Bulls bet on rising ADA price
Cardano bulls remain optimistic that the price will continue to rise as data from Coinalyze shows that 69% of investors are long in the asset.
Furthermore, ADA Open Interest (OI) has increased by 1.67% in the last 24 hours, indicating that money has flowed into Cardano. The long/short ratio for ADA has increased, indicating that investors are opening lons and betting that the price will continue to rise.
In addition, the number of Cardano active addresses has increased by 20% in the last 24 hours, indicating increased interest from investors.
Cardano is currently affected by the broader market movements. If the market turns bullish, the ADA price could break the key suppressive resistance level and reach new monthly highs in August.
Frequently Asked Questions (FAQs)
The migration to v9.1.0 by 79% of ADA node operators is a significant development and indicates progress towards the expected Chang hard fork. This upgrade could have a positive impact on ADA’s network performance and security in the long term.
If the ADA price rises and sustains above the current resistance area, it could indicate increased market strength and invalidate the bearish forecast. A move towards $0.376 and possibly higher to $0.42 could follow.
If ADA continues its bearish trend, the price target could be around $0.280 based on the measured movement of the recent upswing wedge breakout. This target is further supported by technical analysis that suggests a possible drop to around $0.048.
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Evans Karanja
Evans Karanja is a content writer and scriptwriter with a focus on crypto, blockchain, and video games. He has worked with various startups in the past, helping them create engaging and high-quality content that captures the essence of their brand. Evans is also an avid crypto trader and investor, and he believes blockchain will revolutionize many industries in the coming years. When he’s not writing, you can find him playing video games or chasing waterfalls.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Conduct market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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