Cardano price lowered from $2.25 to $2.19 on the day’s trade, recording a decline of 1.5 percentTrading volume rose more than 32 percent, indicating a bearish takeoverPrice currently sits within a decisive zone with equal possibility of a bullish or bearish takeover
Cardano price analysis for the day shows a slight decline in play for the token, seemingly putting an end to a positive last week where price went as high as $2.37. Expectation at the start of the week was for ADA to continue testing the resistance point at $2.41, but a shift in trend may be on the cards according to current technical indicators. Most importantly, the dip in price has been accompanied by a sharp increase of over 32 percent in trading volume, suggesting the trading activity is dominated by selling action in the market. Any price movement below $2.1 would confirm the change in trend towards a bearish scenario.
The larger cryptocurrency market showed mixed outcomes today, with Bitcoin storming past the $57,000 mark with a 4 percent increase. Ethereum also went past $3,500 as Altcoins showed signs of struggle. Dogecoin went down 3.5 percent to $0.229, with Polkadot and Solana also dropping 3 and 4 percent each, respectively. Litecoin, however, consolidated at $180 with a slight increase.
Cardano price analysis: Cryptocurrency heat map. Source: Coin360
ADA/USD 24-hour chart: Price declines along with RSI
On the 24-hour chart, Cardano price can be seen moving below the 20-day moving average with today’s price action. The support zone is once again set at $2, with the extent of the current decline unset yet. Support might come into the market if price moves below the 50-day Exponential Moving Average (EMA) at $2.18. The Relative Strength Index (RSI) has also dropped from 49.72 to 45.37 during the day, following the price decline. The overall trend seen on the 24-hour chart is bearish with the extent of current descent yet unknown.
Cardano price analysis: 24-hour chart. Source: Trading View
ADA/USD 4-hour chart: Sellers dominating the current market
On the short-term chart for Cardano price analysis, a subsequent set of red candlesticks can be seen appearing on the market, pulling price downward to confirm a reversal in trend. Price has moved below the bottom Bollinger Bands’ curve, exhibiting a strong bearish push. The RSI has continued to dip, moving as low as 39.27 which represents a highly undervalued status for the token. Over the next few trading sessions, any buyer intervention will prove to be crucial in maintaining ADA above support at $2.
Cardano price analysis: 4-hour chart. Source: Trading View
Cardano price analysis: Conclusion
From technical indicators, it can be seen that a downward shift in trend is on the cards for ADA. The 24 and 4-hour RSI suggests a bleak picture, with price continuing to decline. If the downward momentum continues below the $2.18 mark, buyer intervention may be expected soon to rescue price above support at $2. For incoming traders, it will be important to determine the extent of the current decent before investing.
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