Cardano price analysis: ADA trading within decisive phase with bears taking control

TL;DR Breakdown

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.

Disclaimer. The information provided is not trading advice. holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Leave a Reply

Your email address will not be published. Required fields are marked *