The Cardano price retreated in the overnight session as traders reflected on the Coinbase direct listing. ADA is trading at $1.4253, which is 8.65% below its all-time high of $1.5572. The currency is now valued at more than $45 billion and is the 6th biggest digital coin in the world.
What happened: Cardano and other digital currencies rallied earlier this week as traders waited for the Coinbase debut as a public company. The debut was relatively successful as the company’s value climbed to more than $85 billion. This made it one of the biggest American fintech companies.
However, after the debut, many cryptocurrencies retreated as investors started to take profit. This was in line with what I predicted yesterday, when I wrote that Bitcoin would retreat. In the market, this is known as buying the rumours, selling the news. The Cardano price also retreated because of profit-taking. Furthermore, the currency has surged by more than 845% this year and it is close to an all-time high. So, what next for Cardano? Looking ahead, there is a possibility that it will rebound as the market waits for the next upgrade to Plutus. This update follows the now Goguen era and will include smart contracts capability.
Cardano price prediction
The four-hour chart shows that the ADA price surged to an all-time high this week. As it has retreated, the cryptocurrency has formed what seems like a bullish pennant pattern that is shown in black. In technical analysis, this is usually a signal that the price will keep rising.
The price is also slightly above the 25-day and 50-day moving average. Therefore, in my view, the currency remains in a bullish trend. If this happens, it will rebound above the ATH at $1.5572. However, a drop below $1.3500 will invalidate this trend.
Don’t miss a beat! Follow us on Telegram and Twitter.
ADA price chart
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Crispus on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.