Cardano has recently shown a bearish trend on its chart during writing. In the last 24 hours, the Cardano price fell by 7 percent. Moreover, the crypto market has been showing a bearish trend for the last few weeks. For example, Bitcoin’s price was approximately USD 20k.
In the last few days, ADA had tried to sustain the bear market by crossing the resistance of 0.55 USD, but it was not successful in sustaining itself for much longer. There has been extreme downward pressure in the market, and according to the traders, a long-term bearish trend is witnessed on the chart.
Cardano (ADA) Falls To $0.44
The bullish trend hasn’t been experienced for a while, and many market makers have done a completely new technical analysis according to the current situation in the market.
- Cardano has been in the bull run for a while
- The token has seen rejection twice at the resistance level making a double top in the price chart.
- ADA might slide, but the investors should be keen on buying more.
Cardano 12-Hour Chart
The Cardano (ADA) has seen a price between 44 and 64 cents in the previous two months. And the midpoint of the range is 54 cents, the level that has experienced both resistance and support on different occasions.
Also, in the past, the resistance level was 49 Cents below the 0.5 mark. Recently ADA has established a series of lower highs and reached new heights in the previous Month (June).
It has also broken below the 14 days and 21 days moving averages on the price chart, which confirms a bearish trend for the short term. There are some expectations that the 0.4 support level of ADA could bounce back and become quite bullish in the coming few weeks.
Cardano Technical Analysis
The RSI (Relative Strength Index) has experienced a lot of resistance to surpassing the 50 mark in the last few months. This shows that the market is still in a bearish trend. Simultaneously, the CMF (Chain Money Fund) has moved between -0.05 and +0.05. This indicates a lack of market capital in the Cardano Market.
In recent weeks, the OBV (On-Balance Volume) has stagnated at one point. Hence the buying and selling pressure is more or less equal, although the price has moved a little lower.
ADS is under pressure due to double top formation at the resistance level. A double top is formed slightly above the 0.5 USD resistance. This predicts that the market has reached to level where its buyer’s exhaustion.
Cardano ADA/USD is one of the highly potential cryptocurrencies which has seen a bullish trend since mid-July. As per the price history charts, the price of Cardano was 0.41 USD.
The momentum on the Cardano charts is still bearish. Also, there is a resilient zone at the 0.4 USD area. If the price falls beneath this level, it could be risky to put short positions on Cardano(ADA). It is expected to have a short-term drop, but in the long run, ADA would be able to recover and might break the resistance level at 0.52 USD.