Briefly –
- Cardano (ADA) awaits a continuous mover over the $3 mark.
- Daily technical indicators appear to favor Cardano bulls.
- Cardano bears need to challenge 61.8% FIB at $2.389 to confirm their presence.
Cardano sustains plunges after another rejection at $2.96. The unattractive sentiments had the altcoin losing 4% since yesterday to stand at $2.80. Keep in mind that most tokens have suffered slight losses after the recent upsurges.
On Friday, ADA-USD climbed to its ATH at $3,026. However, the bulls appeared weak to confirm a sustained upside trend. Maximized bullish efforts in the overall market will be vital for the asset’s ascent.
However, analysts think that Cardano’s loss will be short-lived. That is because the project retains its underlying bullish outlook as we head to the Alonzo upgrade (12 September). Moreover, Cardano remains 14% up in seven days, a sixth consecutive weekly surge.
ADA-USD Retraces Preparing for Upswing
After Cardano extended its massive rally to Monday, market players expected a slight plunge before ADA contemplates an upside move. If the coming sessions support such claims, ADA will explore bullish waves towards higher levels.
According to Cardano’s outlook, the corrective loss faces a massive demand near 61.8% FIB retracement of the rally towards the $2.389 highs from 9 August $1.362 lows.
Increased bearishness to close beneath its pivot point will confirm the reversals, exposing the massive support in the $2.19 to $2.15 range, confluence the bullish 21-DMA and 50% Fibonacci level. For now, ADA has its first support at the 78.6% Fibonacci of the $2.668 uptick.
Keep in mind that the daily Relative Strength Index hovers at 69.03, suggesting a purchasing opportunity in case of price retreat. The assets have higher chances of bullish runs in the coming sessions. That is according to the technical picture. If you are interested in buying the dip, be alert on ADA’s next move.
Magnified bullish actions to overtake the $3.026 highs will have the asset approaching the resistance at 142.2% Fibonacci at $3.477. However, be careful with the speculations. The crypto space is volatile.
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