Cardano price remains above the week’s support zone of $2.50 despite the recent drop from its all-time high (ATH). On the one hand, optimism surrounding the Alonzo hard fork has boosted the crypto by close to 100% since the beginning of August. Nonetheless, a hawkish tone from the Fed Chair later in the day may curb its gains.
Cardano price technical analysis
ADA continues to find support at 2.50 as has been the case for a week now. After reaching its ATH of 2.97 earlier in the week, Cardanp price has since declined by about 12.68%.
However, since Thursday, it has eased on the decline as optimism on the Alonzo hard fork buoys it above 2.50. At the time of writing, it was up by 2.42% at 2.59.
On a three-hour chart, it is trading slightly below the 25 and 50-day exponential moving averages. In the near term, I expect the crypto to remain above 2.50 while recording limited gains.
It will likely trade within a tight range of between 2.50 and along the 50-day EMA at 2.64. As the market moves into the weekend, a hawkish tone from the Fed may trigger a bearish breakout to 2.38 before bouncing back to the support zone of 2.50.
On the flip side, a cautious stance would be bullish for riskier assets. In that case, the resistance level will likely be at 2.85 as the bulls attempt to retest the week’s high.