- Cardano price is expected to move downwards as bears dominate
- The closest support level lies at $1.30
- ADA faces resistance at the $1.35 and further above at the $1.40 mark
After climbing to the $1.40 mark, Cardano price failed to continue its bullish rally, and the price has seen a steady decline. At press time, the buyers defend the price at just below $1.30, the bearish pressure is strong, and the price may fall further if the selling continues.
The broader cryptocurrency market enjoys a bullish sentiment across the last seven days, with most major cryptocurrencies recording profits across the timeframe. Major Players include Ripple’s XRP and BNB that record a 50.54 and a 19.73 percent increase, respectively. Meanwhile, Bitcoin and Ethereum record a 14.81 and a 24.89 percent hike.
Technical indicators for ADA/USDT
Across the technical indicators, the MACD shows strong bearish momentum as observed in the increasing size of the dark red histogram. The indicator saw a bearish reversal two days ago, and since then, the bearish pressure is increasing slowly. Across the EMAs, 26-EMA is trading above the 212-EMA and continues diverging while both EMAs fall.
The RSI is currently trading in the neutral zone a little below the 48.00 mark and does not issue a signal. The indicator has been trading in the neutral zone for the past two weeks. At press time, the RSI has had a small spike towards the oversold region, suggesting an increasing bearish presence.
The Bollinger bands are currently wide but are converging rapidly as the bears take charge of the market momentum. The bands’ convergence suggests a drop in volatility for the Cardano price in the short term. Meanwhile, as the price is consolidating below the bands’ mean line, the bands will be leaning downward for the next few candlesticks.
Overall the 4-hour technical analysis issues a sell signal with 10 of the total 26 major technical indicators suggesting their support for a bearish movement. On the other hand, only seven indicators issue buy signals suggesting bullish momentum. Meanwhile, nine indicators sit on the fence, issuing no support for either side of the market.
The 24-hour technical analysis does not share this sentiment and issues a buy signal with 15 of the 26 indicators suggesting a bullish movement against only one indicator, which suggests a bearish retracement. Meanwhile, ten indicators remain neutral and do not issue any signals at the time of writing.
What to expect from Cardano price?
Cardano price action made an attempt at breaking above the $1.40 level to continue its recovery to past highs of $1.53. However, the momentum fell short as the trend was rejected at the $1.40 resistance level. Since then, the Cardano price action has struggled to gain momentum as the price retraces towards the $1.30 mark.
While ADA currently holds above the $1.30 support level, the selling pressure is increasing, making a lower breakthrough more likely. The short-term indicators are bearish, suggesting a drop to the $1.20 mark, while the mid-term analysis remains bullish, suggesting that further downwards movement below $1.20 is unlikely.
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