Cardano price greatly benefited from Bitcoin’s bull run. Last week, the price of the cryptocurrency saw a tremendous 88 percent increase. Even in the short term, a strong upward sentiment was evident that pushed the price of the cryptocurrency to its current valuation. However, when we take a glance at Cardano’s price action, it shows that a correction seems imminent.
At the time of this writing, ADA was trading at $ 0.319 and had a market value of close to $ 10.5 billion. According to CoinMarketCap, the price of cryptocurrency has risen by over 17 percent in one day, while its 24-hour transaction volume is $ 6.7 billion.
According to Cardano’s 1-hour price chart, a price correction appears to be already in action. The last few trading sessions have seen red candles and the price seemed to fail to break the 34-cent resistance.
While the cryptocurrency has found some support around its current trading price, further declines in price could send ADA’s value up to its net support of $ 0.28. In the short term, the ADA is unlikely to need the assistance of the second level of support of 22 cents, unless there is enormous bearish pressure.
The decline in ADA’s price in the last few hours is in line with the understanding emphasized by its technical indicators. The RSI dropped steadily on the charts away from the overbought zone. It was now approaching neutral territory, highlighting a clear drop in bullish sentiment for money. The MACD indicator is bearish as the signal line crosses the MACD line forming a bearish trend.