The Cardano price is bouncing back after crashing by almost 10% yesterday. ADA is trading at $1.1982, which is in the same range where it has been in the past few weeks. Its market value is at $38 billion making it the 6th-biggest digital currency in the world.
What happened: Cardano price dropped as part of the overall sell-off in digital currencies as concerns about regulations grew. In his widely-read letter, JP Morgan Chief, Jamie Dimon, asked regulators to start looking into digital currencies, fintechs, and other disruptive technologies closely.
This was in line with what Janet Yellen, the Treasury Secretary has suggested. Regulations in the United States would have a negative impact on digital currencies, which are built on the foundation of anonymity. Cardano was not the only digital currency to drop. Indeed, Bitcoin fell to $55,000 while XRP price has dropped by more than 10%.
ADA price dropped on the same day that the Cardano Foundation rolled-out a new supply chain traceability solution known as Cardano Scantrust. This is a notable feature considering that sale of counterfeit goods costs major companies more than $3.2 trillion per year.
The daily chart below shows that the ADA price has been in a narrow range recently. While other currencies have risen, it has remained between the support at $0.9836 and the resistance at $1.4862. The current price is at the same level as the 25-day moving average and is slightly above the 50-day EMA.
The Average True Range (ATR) has dropped to the lowest level since February, which is a sign of low volatility. As I have written before, this could be a sign of a calm before the storm. Therefore, in the near term, we could see a major breakout in either direction. As such, be on the lookout for the support and resistance levels mentioned above.
