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ADA/USD coin

ADA/USD Coin Supported Over 1.4000 – A Quick Update on Buy Signal

Posted Monday, August 9, 2021 by
Arslan Butt • 2 min read
  • The Cardano price is trading near USD 1.41, with a 24-hour trading volume of $1,837,644,424.
  • The ADA/USD coin has closed a bullish engulfing candle above the 50 periods simple moving average, 1.4186.
  • The US dollar has extended its early-day bullish streak, adding to the pressure on the ADA/USD coin.

The ADA/USD coin failed to end its overnight losing streak, remaining depressed below the 1.40 level. As the crypto market gained strength over the last few days, significant altcoins, including XRP, ADA and DOGE, jumped to higher levels. 

The upticks were short-lived as the crypto market started losing ground gradually. Cardano’s price rose by 11.5% in a week. ADA saw a price jump, from the July lows of $1.1 to the current price of $1.4.

Cardano is trading near USD 1.41, with a 24-hour trading volume of $1,837,644,424. Cardano has dropped by 4.78% in the last 24 hours. The fact that ADA did not fall below the $1 mark, and had a comparatively less volatile market performance in the previously bearish market, brings forth the fifth-ranked alt’s tendency to be less affected by the larger market. However, the downtrend in the ADA coin could be associated with the stronger US dollar. 

ADA/USD

Stronger US Dollar Pressures the ADA/USD

On the USD front, the broad-based US dollar extended its early-day bullish streak, drawing some further bids during the second half of the Asian session, as robust US jobs data raised hopes that the US Federal Reserve would increase interest rates. The Fed is also expected to start asset tapering earlier than expected, and this factor kept the US dollar up. 

In addition to this, the recent upbeat US data raised hopes over economic recovery in the United States, which also played a major role in underpinning the greenback. However, the upticks in the US dollar kept the ADA prices under pressure.

ADA/USD coin
ADA/USD 2-Hour Timeframe

Cardano ADA/USD Coin – A Technical Outlook – Upward Channel Support 

The ADA/USD continues to trade with a bullish bias at the 1.4274 level. On the 2-hour timeframe, the ADA/USD pair has formed an upward channel, which is supporting the coin at the 1.4001 level. 

On the chart, the ADA/USD has closed a bullish engulfing candle above the 50 periods simple moving average of 1.4186. This demonstrates solid odds of a continuation of the bullish trend. 

The leading indicators, such as the MACD and the RSI, are also moving into a buying zone. Therefore, we should look for a buying position above the 1.40013 level, until levels around 1.4883 and 1.5430.   

In case of a bearish breakout below 1.4000, selling could be captured until the 1.3426 level. Good luck!  

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