Cardano Price Threatens Multi-Month Low Unless Bulls Defend This Support
The Cardano (ADA) price experienced a decline, breaking below the $0.33 level. This downward movement has resulted in bears gaining control of the market. ADA has lost around 4% of its value in the past 24 hours and has seen a weekly plunge of approximately 10%.
The technical outlook for ADA indicates a bearish intent for the altcoin. Demand and accumulation have significantly decreased on the chart, reflecting a lack of buying interest. The overall market sentiment has remained negative, with Bitcoin also exhibiting volatility. Most other altcoins have followed a similar downward trend.
For ADA to initiate a recovery, it would require renewed buying interest in the upcoming trading sessions. Otherwise, there is a possibility that ADA may reach a multi-month low. The recent news of the SEC suing Coinbase and Binance US has had a notable impact on market sentiment, fueling further selling pressure.
Related Reading: Shiba Inu Breaks Below This Formation: Signals Potential Further Losses
The overhead resistance for ADA is crucial, and breaching that level would be necessary for the altcoin to revive its price. The decline in the market capitalization of ADA suggests that sellers are dominating the market currently.
Cardano Price Analysis: One-Day Chart
As of the time of writing, ADA was trading at $0.32. In recent trading sessions, ADA broke below the long-standing support line at $0.33, suggesting a potential continuation of the downtrend. The key overhead resistance at $0.33 becomes important for ADA to regain bullish momentum and surpass $0.38.
However, if ADA fails to sustain its current price level, there is a possibility of a further decline below $0.30, potentially revisiting its March low of $0.29. The trading volume for ADA in the last session is already lower, indicating weaker buying strength in the market.
Technical Analysis
As ADA broke below the crucial $0.33 support line, buyers’ confidence diminished, leading the coin to hover around the oversold zone. The Relative Strength Index (RSI) is currently below the half-line and near the 30-mark, indicating nearly oversold conditions.
If sellers exert further pressure, ADA may enter the oversold territory. Additionally, ADA is trading below the 20-Simple Moving Average (SMA), indicating that sellers are driving the price momentum in the market.
In alignment with other bearish indicators, ADA formed sell signals on the one-day chart. The Moving Average Convergence Divergence (MACD), a momentum indicator, displayed red histograms that are associated with sell signals for the altcoin.
This suggests a weakening bullish momentum. The Bollinger Bands, which measure volatility, have diverged significantly. This indicates the potential for price fluctuations and increased volatility in the upcoming trading sessions.
Featured Image From UnSplash, Charts From TradingView.com
