ADA’s price has corrected from its all-time high of $2.95 and is facing new pressure that could push it further below $2.60.
Cardano ‘s price has climbed nearly 105% in the past 30 days, and more than 44% in the past two weeks, according to data from CoinGecko.
The crypto-currency’s value has risen from a low of $1.26 at the end of July to a near-breaking point above $3. ADA’s price even hit a new all-time high of $2.95 on August 23, in anticipation of smart contracts on the Cardano network, which are expected to go live on the main network on September 12, 2021.
But while Cardano’s price remains in an uptrend and a retest of the recent high is more likely, the bullishness has faced increased pressure over the past two days and a move lower is very possible.
ADA price holds above $2.60
The drop from $2.95 to $2.46 coincided with the Cardano Foundation’s August 24 announcement of a partnership with blockchain analytics firm Confirm. The agreement calls for Cardano to work with the analytics firm to improve compliance with anti-money laundering (AML) requirements, with providers such as exchanges and custodians able to track ADA usage from their wallets.
The move has drawn heavy criticism from the crypto market, with Weiss Crypto comparing it to the same measures that have “stifled” the banking system.
2/ The excessive regulation is how the banking system was choked to death. With this announcement, it would seem #ADA is proudly announcing they want to follow in their footsteps.
– Weiss Crypto (@WeissCrypto) August 25, 2021
Daily chart ofADA/USD. Source: TradingView
Negative sentiment is threatening to push ADA lower, with bears testing the May 16 peak at $2.46. Bulls are looking to bounce off the support level, and a successful break above $2.65 would invite more bids towards $3.
The RSI is still showing overbought conditions and the MACD is showing a bullish outlook above the signal line. However, both indicators suggest a possible short-term reversal, a move that could help the bears.
If sellers refuse to give up ground near $2.60, it could lead to renewed selling pressure for ADA/USD and push prices lower. In this case, the bulls could rely on support from the horizontal lineale around $2.31. Any further downward correction could result in a breach of the psychological $2 level, with the price of ADA likely to seek support around $1.88.