One of the most popular and talked cryptocurrency Cardano is currently experiencing a tough phase nowadays. The price after hitting the lower support at $0.922 had experienced a bounce and surged slightly but woefully, plunged hard back towards the same levels yet again. Moreover, the ADA price may experience a fresh selling pressure from now that may drag the price to the lower levels that were not visited at any time in recent history.
Before initiating with any downtrend, Cardano tends to consolidate within narrow levels for quite a long time. This is followed by an interim surge which resulted in an extreme plunge below the crucial support levels. Currently, it is pretty important for the asset to maintain at the current levels above $0.92 strongly to prevent extreme drain.
The ADA price is currently swinging between strong support-converted-to resistance levels and the lower local support. Currently hovering along the lower support, the asset may rise a little and yet again around $0.992. But eventually may face a huge rejection much before hitting the strong resistance $1.01 and again test the lower support at $0.925 a couple of times. And finally with a strong rejection, the asset is primed to break the lower support and head towards the levels below $0.8.
The RSI in the short term had maintained a huge descending trend and smashed the lower levels. However, it had flipped and was on its path towards the average levels but the recent change in the trend compelled the RSI to undertake a bearish diverdange. The same was witnessed with the MACD, as the selling volume was eased for sometime and with the fresh sell-off, the selling volume has yet again accumulated.
On the other hand, the ADX, the strength indicator, has been pretty bullish for the past couple of days, however, the trend has changed a little in the past couple of hours. After being less volatile for a pretty long time, the asset was gaining slight momentum by increasing the price variations. Yet the fresh slash compelled the price to remain within the same trend that may compel the price to remain consolidated within a very narrow region until the end of February 2022.
Source: https://coinpedia.org/price-analysis/cardano-growth-beyond-1-is-not-expected/