Cardano is finding buyers at the bottom of its range!
Does this bounce off support mean the end of losses for ADA/USD?
Here are the near-term levels I’m watching:
ADA/USD: 4-hour
ADA/USD 4-hour Forex Chart
Cardano fans seem to be busy defending the floor at the bottom of the short-term range!
Will we see a bounce back to the top soon?
Technical indicators aren’t looking so convinced, as Stochastic is already closing in on the overbought region to reflect exhaustion among buyers.If the oscillator turns lower and moving averages complete this looming bearish crossover, ADA/USD might once again get bogged down by selling pressure.
A break below the range support could be followed by a selloff that’s the same size as the range, so watch out!
On the other hand, if support holds and ADA/USD manages to climb past the middle of its range around $0.55, it could clear the path for a rally to the top.
The Cardano team is gearing up to launch the Vasil hard fork, which is expected to make the chain more scalable while also reducing the gas fee. In turn, this could help boost the adoption of Cardano in the longer run, which would be bullish for ADA.
However, this hard fork has been postponed to August and rumor has it that the public testnet has not even started yet. Further delays could mean more downside for ADA while any indication that the launch will push through soon could keep losses in check.
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