Key Takeaways
- Cardano (ADA) struggles to build bullish price action as bears attempt to push the price lower to $0.4.
- US Treasury transactions hosted on the Cardano ecosystem could spark a historical rally if achieved.
- ADA price trades below 50-day and 200-day EMA as price continues to look bearish on 1D higher timeframe structure.
Cardano’s (ADA) price continues to struggle to form bullish price action. The price of ADA looks bearish following its rejection from a high of $1.3, as the price of Cardano (ADA) created new highs.
Bitcoin’s price crash from $107,000 resistance to a low of $90,500 has led to many crypto assets, such as Cardano (ADA), suffering price decline as the price could experience more decline on the higher timeframe with so much uncertainty regarding trading crypto assets in the last couple of days.
Speculation that Elon Musk and his team will use the blockchain, specifically the Cardano (ADA) network, to decentralize the US Treasury has sparked a lot of speculation and interest from crypto traders. This would be a huge boost for the Cardano (ADA) price, which could see an astronomical rally from its current point to a high of $5 to $10.
While these are just speculations from the media, there are chances that Elon could host the US Treasury on the Cardano (ADA) network due to its unique blockchain technology, which is known for its speed and low transaction speed.
US Treasury To Be Hosted On Cardano Intensifies
Cardano ecosystem is pushing hard for the US Treasury to be hosted on the Cardano network, highlighting key benefits for Elon Musk what the team would achieve with Cardano if the transactions were hosted on the Cardano network with security, speed transactions, no downtime all included in a tweet to Elon Musk.
Approval to host the US Treasury on the Cardano network could see the price rally to new highs, reaching a high of $10, due to its bullish fundamentals and strong technical analysis of price action.
While this news is still far from realizable, let us critically examine Cardano’s (ADA) price analysis for the coming months and weeks as the price consolidates.
Technical Analysis For Cardano Price (ADA) – Buy or Sell?
Source – ADA 1D Price Chart
The daily chart for ADA shows that the price faced resistance around $1.3, which forced the price to trade lower towards $1. The price of ADA failed to hold strong above this point, further declining toward $0.75, where it gained momentum to rally high to $1.
The price of Cardan (ADA) was around $1 consolidated for some weeks, with low volume to the upside as the price struggled with its price action. With the price of BTC suffering a surprise price deepening from $107,000 to $90,500, the price of ADA declined with an over 30% loss as the price could suffer further price decline.
The price of ADA currently trades below the 50-day and 200-day EMA, suggesting a bearish weak trend for Cardano (ADA) price as the price would be looking to retest the lower support region around $0.4. ADA’s price at $0.4 could see strong buy volume for a bounce up to $0.7, where the price would need to break above its first major resistance.
