Cardano (ADA) remains heavily sold in early trading on Thursday morning, as the price of the cryptocurrency continues to fall and its losses continue to extend on a day-on-day basis since the start of the week. The price of ADA has lost 5.7% in the last 24 hours, and remains 10.8% below the $1.40 level at which it was rejected by support earlier today. (The cryptocurrency was also rejected by a further level below at around $1.30).
The Cardano cryptocurrency has been in the news lately. While some cryptocurrency enthusiasts have taken to it readily, others have been hesitant to embrace it. The main selling point of Cardano (ADA) is that it is a fully open source project that prides itself on decentralization, and it is also one of the first cryptocurrencies to leverage the so-called “smart contracts” technology. However, in spite of these accolades, Cardano looks like it is about to fall even further.
Summary of the situation
- The price of Cardano is expected to fall due to the dominance of the bears.
- The closest support is at $1.30.
- ADA meets resistance at $1.35 and a new high at $1.40.
After Cardano’s price climbed to the $1.40 mark, it failed to continue its upward trend and has been in a steady decline. Currently buyers defend the price at just under $1.30 per ounce, the downward pressure is strong and the price could fall further if the sell-off continues.
The broad crypto-currency market has been bullish over the past seven days, with most major crypto-currencies posting gains during this time frame. The top performers are Ripple’s XRP and BNB, which won 50.54% and 19.73% respectively. Meanwhile, Bitcoin and Ethereum posted gains of 14.81% and 24.89%, respectively.
Technical data for ADA/USDT
Technical indicators for ADA/USDT from Tradingview
Among the technical indicators, the MACD is showing strong bearish momentum, which can be seen by the increase in the size of the dark red histogram. There was a bearish reversal of the indicator two days ago, and the bearish pressure has slowly increased since then. As for the EMAs, the 26-EMA is trading above the 212-EMA and continues to diverge while both EMAs are falling.
The RSI is currently in neutral territory, just below 48.00, and giving no signals. The indicator has been in the neutral zone for the past two weeks. Currently, the RSI has made a small jump into oversold territory, indicating increasing bearish sentiment.
The Bollinger Bands are currently wide but are converging quickly as bears take over the market dynamics. The convergence of the bands suggests that the volatility of the Cardan price is decreasing in the short term. Meanwhile, if price consolidates below the centerline of the bars, the bars will tilt downward in the next few candles.
Overall, the technical analysis on the 4-hour chart gives a sell signal, with 10 of the 26 major technical indicators pointing to a downward move. On the other hand, only seven indicators are giving buy signals, indicating bullish momentum. Meanwhile, nine indicators continue to lag, supporting neither side of the market.
The 24-hour technical analysis does not share this opinion and gives a buy signal: 15 of the 26 indicators are bullish, against only one indicator that points to a bearish pullback. Meanwhile, ten indicators remain neutral and give no signal at the time of writing.
What can we expect from the Cardano Prize?
4-hour price chart from Tradingview
Cardano price tried to break above the $1.40 level to continue its rally towards the previous highs of $1.53. However, momentum proved insufficient when the trend was rejected at the $1.40 resistance level. Since then, Cardano price action has struggled to gain traction, with the price falling back to the $1.30 level.
Although ADA currently remains above the $1.30 support level, selling pressure is increasing, making a breakout downward more likely. Short-term indicators are bearish and point to a decline to $1.20, while medium-term analysis remains bullish and considers further movement below $1.20 unlikely.
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