The Cardano price is crawling back after dropping to $1.1778 earlier today. ADA is trading at $1.2175, which is still 22% below the year-to-date high of $1.5625. It is still 20% above the lowest level on Sunday morning. Its market value is at $38.7 billion, making it the 6th biggest digital currency in the world.
What happened: Cardano and other cryptocurrencies have been under pressure this week as traders wait for another catalyst. That is after Coinbase became a publicly-traded company and after Bitcoin surged to almost $65,000. In the past, cryptocurrencies tend to reverse after that happens. For example, in 2017, the BTC price crashed after the CME and CBOE unveiled their futures contracts.
The Cardano price is falling today after a series of developments in the industry. For example, in Turkey, a company known as Thodex suddenly closed. This was notable because it came a few days after the country announced that it would ban crypto trading. Also, while Thodex was unknown abroad, it had more than $1.2 billion in daily volume. Therefore, this action could lead to more regulations, which could affect crypto prices.
The daily chart shows that the Cardano price has struggled lately. It has struggled to move above its highest level this year and the important support at $1. Also, the price is slightly above the 23.6% Fibonacci retracement level while the 25-day and 15-day WMA are about to have a bearish crossover pattern.
Therefore, in the near term, I suspect that the price will remain inside this channel since it is in a price discovery mode. In the longer term, however, the price will likely break out higher since this consolidation seems like a bullish flag pattern.
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