Trendline Supports Cardano at $1.220 – Time to Go Long? - Forex News by FX Leaders
Cardano - ADA/USD Chart

Trendline Supports Cardano at $1.220 – Time to Go Long?

Posted Tuesday, July 27, 2021 by
Arslan Butt • 2 min read
Good morning, fellas.
The ADA/USD coin failed to maintain its previous long-lasting bullish rally and dropped sharply to below the $1.2400 level. The ADA/USD coin was trading at $1.340015 on Monday – this was the biggest one-day percentage gain since July 21. However, the upticks were short-lived, despite the multiple positive developments regarding the future of ADA.

Cardano (ADA/USD) Coin Quick Price Review

The Cardano price is trading near $1.24, with a 24-hour trading volume of $2,539,196,598. The Cardano (ADA/USD coin) dropped by 9.31% in the last twenty-four hours. Cardano has seen a soar in value, adding 13.17% over the past 7 days, which is why the portfolio strategist says Cardano, Ether and Bitcoin could become mainstream cryptocurrencies.
 

ADA/USD

In the meantime, Charles Hoskinson (founder of Cardano and co-founder of Ethereum) anticipates that Cardano (ADA) is going to become one of the biggest projects in the crypto space one year ago. ADA may not be where Hoskinson predicted it would be a year ago, but it is certainly going in the right direction.The declines in the US dollar, triggered by multiple factors, have also been playing a significant role in supporting the ADA/USD coin pair.

The declines in the Cardano prices could be temporary, as portfolio experts recently announced that Cardano would become a mainstream crypto, alongside Bitcoin and Ether. The strategist for Morningstar, an American financial services company, said that the three cryptos could form a “big three” of mainstream cryptos.

Cardano - ADA/USD Chart
Cardano – ADA/USD Chart

Amazon to Accept Bitcoin (BTC) as Payment Method

Amazon’s cryptocurrency project is ready to roll. The company said that it would accept Bitcoin (BTC) as a means of payment on its platform by the end of 2021. The following altcoins to will follow: Ethereum (ETH), Cardano (ADA) coin, and Bitcoin Cash (BCH), respectively. This turned out to be another critical factor that has helped to limit deeper losses in the ADA prices.

Weaker Dollar Underpins Cardano (ADA/USD coin) at 1.2208

On the USD front, the broad-based US dollar failed to extend its  positive performance of the previous day. It dropped just below recent peaks, amid the cautious sentiment ahead of this week’s Federal Reserve meeting. The bearish bias surrounding the US dollar was also seen as one of the major factors that limited the ADA/USD coin pair’s losses.

ADA/USD Coin Forecast – Upward Trendline Supports at $1.2208

On the technical side, the ADA/USD coin is supported at the 1.2208 level, extended by an upward trendline. On the higher side, the double top pattern is extending resistance to the ADA/USD coin, with the resistance remaining at 1.3806. The ADA/USD coin has recently closed a bullish candle above 1.2200, making it a stronger support level. The MACD and RSI support a bearish bias; however, we may not see any selling until the 1.2200 level is violated. On the lower side, the ADA/USD may find support at the 1.1547 level. Good luck!
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