The price of Cardano has been following a bearish trajectory for the past couple of weeks. However, in recent trading sessions, there were bullish attempts as buyers tried to push the price higher. Unfortunately, selling pressure emerged again, causing Cardano to trade near its crucial support level.
The technical outlook for ADA is bearish. The chart’s demand and accumulation indicators have been depreciating, suggesting a lack of buying interest in the market.
Moreover, the broader market strength remains uncertain, with Bitcoin recently dipping below the $27,000 price zone in the recent past. This has resulted in many major altcoins, including Cardano, facing rejection at their immediate resistance levels.
Currently, Cardano finds itself at a critical price point. If it manages to move above the overhead resistance, it could initiate a recovery for the coin. However, if the price falls from its current level, it would struggle to sustain itself above the crucial support, potentially leading to bearish dominance.
If Bitcoin trades above the $27,000 mark, it might positively impact Cardano’s price and potentially lead to a recovery.
However, for a significant price turnaround, it is essential for buying confidence to resurface in the market. The decline in Cardano’s market capitalization indicates that sellers have dominated the market.
Cardano Price Analysis: One-Day Chart
At the time of writing, Cardano (ADA) was priced at $0.367. Over the past 24 hours, ADA experienced a 1.3% decline in price, while there hasn’t been any significant movement on the weekly chart. The key resistance level for ADA is at $0.37, which has proven to be a strong barrier that the bulls have failed to break through in recent weeks.
If ADA surpasses the $0.37 resistance, it can reach $0.39, resulting in a significant price increase. However, if the price falls from its current level, it could drop below the crucial support line of $0.35, which the bulls have been defending thus far.
The trading volume of ADA in the last session was in red, indicating a decrease in the number of buyers participating in the market.
Technical Analysis
Throughout the month, ADA has displayed weak buying strength. This is evident from the Relative Strength Index (RSI) staying below the 40-mark, indicating a prevalence of selling strength rather than buying strength. However, if ADA surpasses its immediate price ceiling, it could lead to a recovery in buying strength.
Moreover, ADA has also fallen below its 20-Simple Moving Average (SMA) line, further confirming that sellers have been driving the price momentum in the market.
Contrary to previous observations, ADA showed buy signals on the one-day chart. The Awesome Oscillator, which indicates momentum and trend reversal, displayed green histograms associated with buy signals. This suggests a potential price appreciation in the upcoming trading sessions.
The Bollinger Bands, which represent price fluctuation and volatility, were also parallel and wide. This indicates a higher likelihood of price fluctuations.
Featured Image From UnSplash, Charts From TradingView.com
Source: https://www.newsbtc.com/news/cardano/cardano-price-rejected-at-0-36-how-long-will-the-correction-last/