Cardano price analysis: ADA rejected at $0.600, downwards movement to follow

TL;DR Breakdown

• Cardano price analysis suggests a downwards movement to $0.500
• The closest support level lies at $0.5500
• ADA faces resistance at the $0.600 mark

The Cardano price analysis shows that the bulls are unable to climb past $0.600 and have fallen back to the $0.5600 support level as the bullish activity dies down. 

The broader cryptocurrency market has observed a bearish market sentiment over the last 24-hours as most major cryptocurrencies record negative price movements. Major players include NEAR and DOT with a 6.4 and a 5.7 percent decline respectively.  

Cardano price analysis: ADA falls back to $0.5600

Across the technical indicators, the MACD is currently bullish across the 4-hour chart as expressed by the green color of the histogram. Currently, the bulls seem to be exhausted as the indicator shows a lighter shade of the histogram suggesting a declining bearish momentum. If the price action is unable to climb above the $0.600 mark before the end of today’s session, the indicator may be observing a bearish crossover across the short-term charts. 

The EMAs are currently trading close to the mean line as the bullish recovery shows a return of market momentum towards the bulls. However, while the EMAs are above the mean line, the current gradient suggests a lack of buying activity in recent hours. Currently, the 12-EMA is moving horizontally while the 26-EMA continues rising at a low slope suggesting a bearish crossover may occur across the short-term charts. 

The RSI has been trading in the neutral region for the past five days as the price action stabilized around the $0.5500 mark. At press time, the indicator is trading at the 49.51 mark hovering around the mean level. The current position leaves room for sharp movement in either direction while the current gradient shows a lack of momentum from either side of the market. 

The Bollinger Bands have been narrow for the past few days and show further convergence as the price stagnates at the $0.5600. At press time, the indicator suggests declining price volatility while its lower limit provides support to the bulls at the $0.5301 mark. Meanwhile, the mean limit presents resistance at the $0.5639 price level and further above at $0.5976. 

Technical analysis for ADA/USDT

Overall, the 4-hour Cardano price analysis issues a weak buy signal, with 9 of the 26 major technical indicators showing support to the bulls across the timeframe. On the other hand, eight of the indicators support the bears, showing a significant bearish pressure in recent hours. Meanwhile, the remaining seven indicators sit on the fence and do not issue any signals at press time.

The 24-hour Cardano price analysis does not share this sentiment and instead issues a sell signal with 14 of the 26 major technical indicators suggesting a downwards movement against only two indicators suggesting an upwards movement across the timeframe. At the same time, ten indicators remain neutral supporting neither side at the current time. 

What to expect from the Cardano price analysis?

The Cardano price analysis shows that the price action has stagnated at the $0.5600 mark and is unable to break past $0.600 mark as the buying momentum died down. As time passes, the bearish pressure continues to increase and a downwards breakout becomes more likely. Currently, speculation is high in the markets as eyes turn to Bitcoin to see whether it climbs past $30,000 or falls down towards the $25,000 mark. 

Currently, traders should expect the Cardano price to move downwards towards the $0.500 support level as the momentum turns bearish. If the bulls are unable to defend the level, then the next support level lies at the $0.4500 mark. The technical analyses are also suggesting a downwards movement to $0.5500 that may snowball into a bearish market.

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