The Cardano price has yet to turn completely bearish, but the bulls have abandoned the current price level. This has caused ADA to lose almost 3% in the last 24 hours. Despite this decline, the altcoin has retained some gains on the weekly chart, although most of these gains have been wiped out due to the recent price drop.
The technical outlook suggests that ADA may soon fall into the hands of sellers as a drop has followed a slight decline in demand in accumulation.
While Cardano is still in a demand zone, breaching its immediate resistance mark could allow the bulls to regain control in subsequent trading sessions.
With Bitcoin’s price falling below the $30,000 mark, other altcoins have also slipped below their immediate support level. However, if ADA can surpass the $0.42 level, it has the potential to rally significantly. A decline in ADA’s market capitalization indicates short selling on the one-day chart.
Cardano Price Analysis: One-Day Chart
At the time of writing, ADA was trading at $0.41. Overhead resistance for the altcoin stands at $0.42. A move above this level could potentially push the price to $0.46. Breaching $0.46 might even result in ADA revisiting $0.50.
Cardano is currently within a strong demand zone, from $0.30 to $0.42. However, a drop from the current level could lead to a decline in price to $0.33. Falling from $0.33 may cause ADA to fall further to $0.30. In the last session, the amount of Cardano traded was red, indicating increased selling pressure and volume.
Technical Analysis
The Relative Strength Index (RSI) is a momentum indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the market.
The RSI formed a downtick in this case and stood below the 60-mark. This meant that the buying strength for Cardano was slowly fading out, indicating a shift in the market sentiment toward selling pressure.
At the time of writing, as demand for Cardano started to fall. The cryptocurrency began displaying sell signals. The Moving Average Convergence Divergence (MACD) formed red histograms. This indicated that sell signals were being generated on the chart.
In addition, Bollinger Bands, which measures an asset’s price volatility and fluctuation, began to widen, suggesting that Cardano’s price may encounter increased volatility.
The upper band of the Bollinger Bands indicator will now act as crucial resistance for Cardano. Breaking above it will require a significant amount of buying strength.
As with any cryptocurrency, the broader market’s strength will be crucial in determining how Cardano performs over the subsequent trading sessions.
Featured Image From UnSplash, Charts From TradingView.com
