Cardano may continue to reach new record lows in the short term, but there may be a bullish-driven rebound. The price would rise to USD 0.46 if it breaks through the resistance zone, but investors must be attentive to what might happen.
Despite being in a sideways or cumulative trend, the price of Cardano (ADA) continues to drop. That situation causes concern among investors, as the crypto asset has traded at annual lows. For example, ADA was worth around USD 0.43 in January 2021.
One of the altcoins the crypto winter has affected the most is ADA. It has accumulated a 5.3% gain over the last 24 hours but a 7.4 loss over the past week, according to CoinGecko. The following analysis aims to predict what might happen in the coming days of July.
Fundamental Developments Might Boost the Price of Cardano
The fundamentals outlook seems favorable for the price of Cardano. The whales continue to take advantage of market falls to hoard more, a sign that ADA will appreciate further. Besides, the blockchain launched a payment solution that might boost the value.
This novelty will undoubtedly allow the use of Cardano to increase among small and large companies. However, there has been a delay in the upcoming Vasil fork for various reasons, which might hinder it.
It is important to remember that the Federal Reserve (Fed) rate hike has caused widespread market declines. These changes in monetary policies have not spared crypto assets like ADA, Bitcoin (BTC), and Ether (ETH). There may be another crash after they announced that a 100 basis point hike is likely to occur.
Technical Analysis of the Price of ADA for the Short Term
The price of ADA may continue to drop and reach new record lows in the short term. It is possible to identify the current bearish trend with the trend lines. However, there may be a bullish-driven rebound as Cardano is at the lowest levels.
The ENV channels confirmed that there would be a rise in the value of ADA. The Japanese candlesticks are crossing toward the central margins of the channels. If they closed at these levels, a bullish confirmation would take the price to the resistance zone at USD 0.44.
In addition, the RSI confirmed the rise as it recently gave oversold readings. It is currently rallying toward neutral levels and has rejected bearish crosses with its moving average twice.
The MACD also suggests that there may be a rise as its histogram and moving averages crossed higher. It thus confirmed that the price could rise to USD 0.44 in the short term.
If the price breaks through this resistance zone, the next level would be USD 0.46. However, there might be a rejection, so investors must be attentive to what might happen. Even if the value ADA overcame the resistance at USD 0.46, we would have a confirmation that it would return to USD 0.50.
Cardano is trading at around USD 0.441 and has accumulated a 4.1% gain over the last 24 hours. While its daily trading volume is above USD 779.43 million, its market capitalization is about USD 14.91 billion, according to CoinGecko.
By Alexander Salazar
