The Cardano price continues to consolidate around $1.50 after failing to break higher. Technicals indicate it might get cheaper in the near-term.
Cardano is last trading at $1.5068 down 0.033 (-2.14%)
ADA is currently the 5th largest crypto asset, with a market cap of $48 billion.
Cardano is a decentralized, proof-of-stake (PoS) blockchain that competes with Ethereum. Cardano was founded by Charles Hopkins, who was also a co-founder of the Ethereum network.
Proof-of stake uses significantly less energy than Bitcoin and Ethereum’s proof-of-work (PoW) consensus. The Ethereum network is in the process of transitioning from PoW to PoS. Scaling solutions will further improve Ethererum’s energy efficiency. However, for now, ADA has the advantage.
NBC News recently labeled Cardano the ”most significant proof of stake cryptocurrency on the market.”
The Cardano price has fared better than most during the recent volatility in cryptocurrencies. Although ADA is 40% lower than its May all-time high of $2.5147, it’s still up over 800% since the start of the year.
ADA Technical Outlook
The 4-hour chart clearly shows that ADA has struggled to clear trend line resistance. The trend from the May high is currently around $1.6000.
Previous attempts at the trend resistance have failed, so this is an important level.
The MACD indicator is negative on the 4-hour time frame, suggesting momentum has turned bearish. Moreover, the Relative strength indicator is showing a bearish divergence.
This points to a deterioration in upside momentum, suggesting the price may trade lower in the short-term.
The market should find support between $1.3350 (29th May low) and $1.4000 (8th June low).
However, ADA will reverse this bearish sentiment if the price trades above the trend line resistance,
I maintain a bullish outlook and agree with my colleague Crispus Nyaga who highlighted ADA’s positive long-term prospects in his report yesterday.
However, bulls may get a better entry point over the next day or two.