February 23, 2024

Is Cardano’s Recent Rally a Strong Positive Movement or is it a Bull Trap

Cardano reportedly managed to form a significant rally, which helped its price climb higher. The report shows that the rally for Cardano (ADA) was observed on May 30. It was a 45% rally that succeeded in pushing the price of Cardano higher.

Due to the surge, Cardano went up to $0.48 and crossed the particular mark. Starting from May 30 and stepping into the next day (May 31), the trading price of Cardano had been pushed up to $0.68.

For the entire investment community of Cardano, it was a huge surprise that in just 48-hours, its price rose by 45%. Although Cardano did grow above the $0.48 mart, it failed to sustain it for a long time.

Soon, the bears were able to catch up to the bulls and they were able to outdo them with their strong selling power. With the strong selling power of the bears, Cardano’s price soon retreated.

The trading price of Cardano ended up experiencing a 13.75% dip after hitting its all-week high price. Despite the fall, the trading price of Cardano still managed to grow up at a significant rate.

ADA’s Current Trading Price

The performance graph for ADA shows that on June 1, Cardano’s trading price recorded a sharp retreat. When ADA retreated, its price ended up losing a portion of the rally it had gained in the past 2-days.

Now, most investors want to know if the trend of ADA’s recovery will continue or not. They are eager to understand whether the ongoing rally experienced by ADA would extend longer or not.

The investors are extremely concerned and want to know if ADA will be able to gain some recovery for a longer period. This is because the investors are eager to see ADA’s price grow enough to show signs that it can get closer to $3.16.

The $3.16 price was the all-time high Cardano had hit back in September of 2021. At the time of writing, the trading price of ADA is 80% less than the all-time high.

The Exact Point of Retreat

ADA started to experience a downtrend in its price when it reached the 50-day EMA. The performance chart confirms that the 50-day EMA was the resistance mark for ADA.

Two major factors that caused the dip in ADA were the dip in the price of Bitcoin and the asset dip for the S&P 500 (SPX) stock exchange.

According to the analysts, it is a trap that the bulls have been forming. They had formed the same trap for the investors back in March of 2022. If the investors are able to bring ADA close to the March price, which was around $1.73, they may start selling ADA bringing its price lower.

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