The Cardano rate has risen sharply in the past few days. The main reason for this was the Alonzo upgrade, which, according to IHOK, should come on September 12th. As a result, ADA / USD rose close to the record high. After that, a consolidation set in. As the Investing.com experts wrote in a market comment on August 17th, the Cardano is likely to face a setback to $ 1.88, where the 10-day line could hold and trigger a backlash.
Cardano course: Attention, the ADA bears gallop!
Since mid-July, the Cardano crypto currency has risen from $ 1.02 to a peak of over $ 2.25 and has thus achieved an amazing rally in the crypto markets. The daily chart of the fourth most important cryptocurrency according to market capitalization now signals that the ADA / USD could run out of air in the short term. We already had this in our Cardano article yesterday with the title “Cardano course: Warning to all ADA buyers! FOMO is making the rounds!” pointed out.
We fixed this on the extremely overheated indicator levels that literally shouted for a correction in the wake of the recent explosive ADA price rally. Not only has the RSI scratched its all-time high, no, the MACD histogram has already shown declining momentum.
Additionally, the Cardano rally stalled at exactly the 78.60% Fibonacci retracement of the entire downward momentum from May to June at $ 2.165. Two day candles with distinctive wicks were recently formed in this area, which was also to be interpreted as a warning signal.
Overall, the picture for the Cardano remains clearly bullish, but in the short term ADA investors should deal with brands on the underside that could serve as support. An initial correction target is now setting the former breakout level at 1.95 / 1.96 dollars before the 10-day line comes back into play at 1.88 dollars.
If, on the other hand, the Cardano price catches up again and conquers the resistance from the 5-day line as well as the above-mentioned 78.60% Fibonacci retracement in the area around 2.13 / 2.165 dollars, there would be rally potential again to the high of March 17th May at $ 2,322. This price mark is also a transition point for a move to the record high of $ 2.463 and beyond.