May has come to an end after being one of the most remarkable months for Cardano (ADA). It is the month that Cardano attained an all-time high of $2.46. The 5-day chart shows a descending triangle that recovered on Monday following the weekend downswing. Analysts attribute the recent weekend downtrend to a group of banks in Britain that announced to crack down on cryptocurrency activities. Nonetheless, Cardano and Ethereum have maintained stability and a moderately upward momentum even while the broader cryptocurrency market is performing within a bearish circle.
Cardano, gained above 12% on Monday and at least 6.5% over the past week. ADA’s price action has left most traders wondering whether the market is in its recovery phase, preparing for a downswing or another price correction to drive altcoins to fresh all-time highs.
More reason for doubt in the current market could be the result of the 4-days price stability that took place between Tuesday and Saturday of last week. An action some analysts think was laying the base for a strong support that will steer Cardano towards the next bull run. Apart from USDT -all top 10 cryptocurrencies by market cap gained within the 7-20% range on yesterday’s daily chart. The price reversal resulted in an exponential gain of over $150 billion in total cryptocurrency market capitalization.
The overall market sentiment during the weekend was undecided – with sharp rejections and reversals taking place across the market. At the time of writing, the market sentiment has shifted to positive signals following ADA’s move from Monday’s intraday low of $1.51 to today’s (Tuesday) intraday high of $1.77.
Cardano price movement in the last 24 hours
Cardano opened the daily and month of June chart at an upward trajectory, steering the bulls into optimism on what lies ahead. The price moved from $1.72 to $1.76 before correcting downwards at around $1.69 in the early morning hours. ADA has since recovered from the downward correction and is currently trading at $1.71.
On the 1-hour chart, ADA bulls are consolidating momentum with support near $1.73 in an attempt to break above the 50% FIB extension level of the 4-week high at $1.75. However, there are signs of weaknesses as an upward trend has already been rejected at $1.74, and a long red candle has already formed with a bottom at $1.72.
Conclusion
The cryptocurrency market has been weighed down by increasing regulatory pressure across the world. Nigeria begun by banning crypto exchanges and trading activities in the wake of #EndSars. Binance delisted Naira as a result. This was followed by a crackdown of crypto exchanges and mining activities in China by regulatory authorities. Now, a group of financial institutions is planning to crack down on crypto in the United Kingdom
