Can ADA Price Break Swing High or Will it Fall?

Cardano, a blockchain platform that uses a unique proof-of-stake consensus mechanism known as Ouroboros. In P-O-S, the people who hold some ADA coins can aid the network and gain rewards.

Cardano is known to be flexible and robust. It can support various Dapps on a distinct network layer, so they do not affect the transactions.

ADA coin empowers Cardano and its blockchain. It is availed to pay for the fees using the network and Dapps. It will also be used to provide a voice to users in Cardano’s future, as users could vote on some of the most significant decisions in the next Voltaire stage.

In the next stage, ADA holders might have more power and impact over the governance and directives of the project.

Furthermore, it is developing and growing through various stages. The current stage is Basho, which is working on the network to make it swifter and more efficient. After the end of the Basho stage, the next stage would be Voltaire, which would allow the users to vote on how to enhance Cardano further.

Cardano coin’s (ADA) open interest is $238.80 Million. As per Coinglass, another crypto analysis website, it rose by 12.72% in the previous session. The long versus short ratio for 24 hours is 1.0471. The short liquidation is $526.28 K versus $970.95 K for the long liquidation.

Could Cardano Crypto Soon Reach the Lows?

The price action of ADA crypto was in a strong uptrend over the last three months, showing a 97.99% growth to $0.7000. However, the ADA crypto confirmed a sign of weakness at the top as the price struggled and eventually plunged from the key $0.7000 mark on the chart.

As of now, the price is following the trendline resistance and it seems like the ADA crypto could produce a sharp drop, as it reaches the resistance level and falls to new depths from the current support level.

The CMP is at $0.5155 with an intraday surge of 2.24% and the ADA asset is displaying bearish characteristics and can reduce its value more. Furthermore, it has shown bad performance in the past week, and last month, by 6.48% and 13.135 respectively, thus, indicating a consistent downward trend.

Therefore, if the price fails to sustain above $0.4500 (nearest support), then the fall is imminent up to the lower levels. On the other side, if ADA manages to surge and crosses the previous swing high of around $0.6000, then it could continue to test the supply region.

The ADA asset is demonstrating bearishness and downward momentum as it sinks below major trend EMAs.

In addition, the ADA asset is showing bearish signs as MACD went below the zero line with a potentially strong bearish cross and the RSI is below the 50 level as well, indicating that the ADA asset is still in a bearish zone and can go lower.

Summary

The price is following the trendline resistance and it seems like the ADA crypto is close to a huge drop, as it reaches the resistance level and falls to new depths from the current support level.

Furthermore, it has shown bad performance in the past week, and last month, by 6.48% and 13.135 respectively, this indicating a consistent downward trend.

Therefore, if the price fails to sustain above $0.4500 nearest support, then the fall is imminent up to the lower levels.

Technical Levels

Support Levels: $0.4500

Resistance Levels: $0.6000

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.