ADA Price Analysis: Price Consolidates Next Move as Cardano Investment Products See Institutional Buying

• Cardano’s ADA was up 1.28 percent to trade at $0.46
• Cardano’s IOG declared on July 3 that it had successfully hard forked the Cardano Testnet
• The Vasil hard fork has been the most anticipated update for Cardano (ADA)

As of the time of writing, Cardano’s ADA was up 1.28 percent to trade at $0.46, as the price continues to consolidate in a tight range for the fifth consecutive day. The Vasil hard fork deployment on the Cardano testnet, a network upgrade expected to increase Cardano’s throughput, also added to the positive mood. The previous week saw inflows into Cardano investment products as well, suggesting that investors may have resumed diversifying their portfolios. In a major step toward the Vasil update on the mainnet, Cardano’s IOG declared on July 3 that it had successfully hard forked the Cardano Testnet. The Vasil hard fork has been the most anticipated update for Cardano (ADA) since Alonzo’s hard fork and the launch of smart contracts, and it is anticipated to include four Cardano Improvement Proposals (CIPs): CIP-31, CIP-32, CIP-33, and CIP-40.

Key Levels
Resistance Levels: $0.746, $0.669, $0.536
Support Levels: $0.421, $0.384, $0.250

ADA/USD Daily Chart: Bearish

ADA/USD Daily Chart

The pair remains in extended consolidation after finding support at the $0.421 low level in its endeavor to strengthen against the bears under the moving average (MA 50) barrier around $0.520. The ADA/USD pair needs to overcome the MA 50 and $0.536 resistance level to bring the overall rebound sentiment into balance.

A medium- to long-term projection suggests that the bearish bias in the ADA/USD might have ended around the horizontal support at $0.421, the May lows and that the recent rebound may continue higher. The relative strength index (RSI) has risen back over its reading at 40, despite the daily moving averages (MA 50) displaying ranging momentum in the bearish area.

ADA/USD 4-Hour Chart: Ranging

ADA/USD 4-Hour Chart

The pair’s recent breakout above the MA 50 and MA 200 on the 4-hour time frame might be related to a brief uptick during its fall. The support level of $0.421 has not been breached, and the intraday bias for the ADA/USD remains favorable. Positively, a breach of the $0.50 mark might boost the recovery from the most recent low of $0.421.

Trading over the MA 50, which is currently at $0.465, creates the possibility of a return to the next resistance level at $0.536. On the negative side, a breach of the $0.421 level might restart the decline towards the $0.421 level. If the pair manages to overcome resistance levels and move higher, it will slam into the resistance of the horizontal line at $0.669 right away.

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