September 30, 2022

Prepared for Retracement? Cardano Dips Below $2 Following Market Downturn (ADA Price Analysis)

2 min read

ADA/USD – – Market Retraces From Weekend Surge

Key Support Levels: $1.87, $1.77, $1.68.
Key Resistance Levels: $2.00, $2.10, $2.20.

In spite of dropping 6.5% today, ADA is still up 17% over the week. This is due to the fact that it surged strongly on Friday as it climbed up from $1.85 to break $2.00 and struck $2.15. It continued Saturday to reach as high as $2.28, where it lastly rolled over.

On Monday, ADA dropped from $2.20 to strike $2.08, and it continued further yesterday as it fell beneath $2.00 to strike $1.90. Today, ADA surged as low as $1.87, where it discovered assistance at a. 382 Fib and has rebounded.

The market was extremely overbought prior to the rollover, and a retracement is always expected when the bulls end up being overextended like this.

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ADA/USD Daily Chart. Source: TradingView. ADA-USD Short Term Price Prediction Looking ahead, the very first resistance now lies at $ 2.00.

This is followed by $ 2.10, $ 2.20 (bearish.786 Fib ), $ 2.28, and $ 2.33 (bearish.886 Fib). On the other side, the first strong support lies at $ 1.87 (.382 Fib). This is followed by $ 1.77 (.5 Fib), $ 1.68 (.618 Fib), and $ 1.50(100-day MA). As mentioned, the RSI was in very overbought conditions prior to this week’s retracement. The RSI has now gone back to sustainable bullish levels as it sits underneath the overbought limit. The bulls are still in charge and are primed to begin another bull leg higher.

ADA/BTC – – ADA Retraces Against BTC.

Key Support Levels: 4200 SAT, 4150 SAT, 4000 SAT.
Secret Resistance Levels: 4570 SAT, 4765 SAT, 4900 SAT.

ADA reached as high as 4765 SAT (June resistance) over the weekend after surging from as low as 3200 SAT at the start of the previous week.

Ever since, ADA rolled over and started to head lower. Yesterday, it fell from 4600 SAT to reach as low as 4290 SAT. It continued to surge as low as 4230 SAT today but has considering that rebounded to 4370 SAT.

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ADA/BTC Daily Chart. Source: TradingView. ADA-BTC Short Term Price Prediction

Moving on, the very first resistance lies at 4570 SAT (1.414 Fib Extension). This is followed by 4765 SAT (June resistance), 4900 SAT, and 5000 SAT.

On the other side, the first support lies at 4200 SAT. This is followed by 4150 SAT (.382 Fib), 4000 SAT, and 3960 SAT(.5 Fib & & 100-day MA).

The RSI is still in the bullish favor as the purchasers remain in control of the marketplace momentum.