Cardano (ADA) Trading Range Moves Lower, to $1.00 – $1.50
Cardano is trading lower this month between the 100 and 200 SMAs
The situation in cryptocurrencies has changed in the last two months, from being extremely bullish to being extremely bearish in late May. In June, and so far in July, the trend has remained bearish, although not as massively bearish as it was in the last two weeks of May.
The highs are still getting lower, which indicates that sellers remain in charge, since buyers are unloading their positions lower every time. However, the lows are not getting any lower. Instead, a base has formed in most cryptocurrencies, which for Bitcoin comes at around $30,000, while for Cardano is around $1.
The volatility is high in the crypto market, so don’t expect a straight line as support, but rather a support zone surrounding these levels. Recently, for the ADA/USD, the support has been reinforced by the 200 SMA (purple) on the daily chart, between $1 and $1.50, as shown above.
Until the middle of June, the 100 SMA (green) was acting as support for Cardano, but the second wave of selling took the price below it and now it seems like this moving average has turned into resistance. At present, the trading range in Cardano has roughly moved between the 100 SMA at the top and the 200 SMA at the bottom.
So, according to this chart pattern, we should see the ADA coin reverse down, which has already started now, and it is likely to head towards the 200 SMA at least. The stochastic indicator is also overbought and reversing down as well. This news is great for Cardano, with staking increasing to record levels for this crypto, as the Alonzo hard fork gets underway.
The number of addresses staking Cardano ADA has exceeded 659,000 and there are 2,647 active staking mining pools. Total staked funds also exceed $30 billion, which represents more than 70% of ADA’s total supply. This is keeping Cardano better supported that most cryptos, but the sentiment is bearish across the market and ADA can’t escape it either.
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