Cardano Valiantly Holds Support, ADA Rebounds to New Range

After an intense battle for dominance, Cardano bulls are back in control, now eyeing new ranges.

People seeing a Cardano compass navigating with their ADA journey.
Created by Kornelija Poderskytė from DailyCoin
  • Cardano Bulls have successfully defended support. 
  • The crypto rally following the FOMC’s rate hike has instilled confidence in investors.
  • Should the Bulls maintain their determination, ADA could eye a retest of the June High. 

Earlier this week, Cardano struggled to hold ADA above support in the face of mounting sell pressure, leading to ADA teetering on the edge of the $0.3 level. 

However, after an intense battle for dominance, Cardano Bulls have triumphed over the Bears, pushing ADA back into their territory, now eyeing liquidity above $0.35. 

Cardano Bulls Take Control 

After valiantly defending the $0.30 level against rising sell orders from panicked investors, Cardano Bulls’ determination has finally paid off. Following the FOMC’s rate hike, the crypto market rally pushed ADA’s price beyond $0.31 back into Bulls’ territory, securing a 5% gain. 

Cardano Price Chart (July 27).
Cardano Price Chart (July 27). Source: CoinMarketCap.

The overnight rally propelled Cadano’s price and led to over $600,000 in losses for bearish investors who had shorted ADA, as per CoinGlass data. Investors now appear more confident, with ADA hovering over $0.31. This was underscored by the positive long-to-short ratio, indicating a surge in buying activity and long positions from traders. 

Cardano derivatives data.
Cardano derivatives data. Source: CoinGlass.

With this renewed vigor, Cardano could embark on a bullish rally and revisit the June High at $0.38. However, it all hinges on the Bulls’ continued tenacity. Should they fail, the Bears will regain control to test support at $0.30 and potentially push the price down to $0.25, hindering ADA’s journey toward the coveted $1 price level. 

It’s worth noting that many macro-bullish events are in the pipeline, which could impact Cardano’s journey. The Blockchain Regulatory Certainty Act, recently marked up in the Financial Services Committee, could lay the groundwork for a more defined regulatory framework for cryptocurrencies in the US and address concerns surrounding Cardano

Besides this, ADA holders have much to look forward to with exciting developments such as Mithril, SanchoNet, and Node 8.2.0, all set to evolve the network’s decentralization. The following weeks are crucial for Cardano, and investors will closely monitor ADA’s movements. 

On the Flipside

  • Market dynamics can be unpredictable, so it is important to consider alternative perspectives and opinions when evaluating the potential future performance of Cardano.
  • The FOMC’s rate hike sparked a wave of liquidations throughout the market, amounting to over $50 million. 
  • Even with this rally, Cardano remains shy of $100 million behind Dogecoin in total market cap rankings. It must continue its upward momentum by another 3% to surpass Dogecoin

Why This Matters

Cardano resilience in holding support showcases its strength and instills confidence in the market. The rally could signal potential bullish momentum and translate to positive returns for ADA holders. However, caution is advised, as crypto markets can be volatile and unpredictable. 

More on Cardano:

Cardano Loses 7th Spot to Dogecoin as ADA Falters at Key Point.

More on the FOMC:

Boring FOMC Speech and Predicted Rate Hike Fails to Stir Crypto Market.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Insha Zia

Insha Zia is a crypto journalist at DailyCoin who specializes in NFTs, Metaverse, and Web Gaming. With a Bachelor of Science in Computer Systems Engineering, he delivers high-quality articles with his technical background and expertise in data analysis and programming languages, aiming to educate and inform readers accurately, transparently, and engagingly. Insha believes education can drive mass adoption of the crypto space, and he is committed to giving DailyCoin readers a better understanding of the technology.