Cardano (ADA/USD) Eyes $2 Next – Price Analysis

Cardano presents a bullish outlook today.
ADA saw another 10% loss yesterday.
For now, the altcoin trades at $1.3.

Cardano’s price flashes bullishness since the support at $1.4 halted further drops by the alternative coin. ADA/USD consolidated since then, indicating a possible reversal in the up-and-coming trading sessions.

Meanwhile, the pair lost 10% on Wednesday, and yesterday’s close beneath the trend-line support boosted the sharp fall.

Cardano has its prices consolidating beyond the support of $1.40 at the moment. Losing this level can translate to a continued downfall towards the next footing near $0.8650. Meanwhile, keeping the level will magnify the chances of shifting to a bullish pattern, confirmed by the green resistance and red horizontal support. These levels have served as massive momentum indicators over the past.

Meanwhile, the volume has risen after ADA broke under the trend-line support, showing aggressive actions by traders selling at lower price zones. That added to the momentum indicators suggesting downswings shows that Cardano might plunge further by breaking the vital level.

Meanwhile, the 20-day and 100-day Exponential Moving Averages indicate a bearish cross, confirming that ADA has a chance to fall further from the level. Furthermore, breaking the trend-line support will clear the room for increased losses.

The MACD has entered the bearish regions. That might be negative since ADA’s failure to maintain the support will lead to a downward move to $1.0950, last month’s peak. Meanwhile, keeping the footing at $1.40 can support bullishness. That would see ADA attempting to crack the descending channel, heading to the optimistic target at $2 and higher.

While writing this blog, ADA/USD trades at $1.3, relieving most traders that feared a drop under $1. The altcoin might see bullish strength after cracking $1.45. However, Cardano has to consolidate to gather the momentum necessary to overcome this hurdle. Failure to keep the barrier can witness ADA dropping to the support of $0.8650.

The 4hr chart shows ADA keeping the $1.4 support, confirming potential reversals later on the day. For that reason, enthusiasts can expect the asset to regain yesterday’s 10% drop. Moreover, holding beyond this support can translate to new highs soon.