Cardano (ADA) Faces Downtrend: Are Selling Pressures Pushing for a Further Drop?

Cardano Price Analysis

Cardano (ADA) is experiencing a significant downtrend as the price has shifted from a high of $0.3606 to a low of $0.342. Market analysts are questioning whether selling pressure will lead to further price declines or if a reversal is on the horizon. Currently, ADA is trading at around $0.3562, with increasing daily trading volume and market liquidity.

Key Takeaways

Cardano (ADA) has seen a price drop from $0.3606 to $0.342, signaling a bearish trend.
The market capitalization is $12.75 billion, and the daily trading volume has surged by over 96.76%.
Technical indicators suggest a continued bearish momentum, with limited buying interest currently.
The ADA price may test support at $0.3542, with potential for further losses if downtrend persists.
A reversal scenario could see ADA pushing up towards resistance around $0.3582.

Current Market Situation for Cardano

At the start of the trading day, Cardano (ADA) reached a peak of $0.3606. However, a shift toward bearish conditions has seen the price drop to a low of $0.342. Currently, according to CoinMarketCap (CMC) data, Cardano is trading within the range of $0.3562. The market capitalization stands at $12.75 billion, with daily trading volume increasing significantly to $677.71 million, representing a rise of over 96.76%. Additionally, Coinglass reported a liquidation of $2.20 million in Cardano assets over the past 24 hours.

Future Prospects: More Losses or a Possible Trend Reversal?

Technical analysis indicates that Cardano’s Moving Average Convergence Divergence (MACD) and signal lines remain below the zero line, reflecting bearish momentum for ADA. The trend is leaning downwards, and unless the MACD lines cross back above zero, the momentum is likely to remain weak.

ADA MACD Chart ADA chart (Source: TradingView)

Furthermore, the Chaikin Money Flow (CMF) indicator is currently at -0.04, suggesting some selling pressure exists in the market. This negative value implies that money is flowing out of ADA, which may lead to sideways movement or a slight decline unless buying interest increases.

Also noteworthy is the daily Relative Strength Index (RSI), which is positioned at 44.12, indicating that ADA is in neutral to slightly bearish territory. Currently, the asset is neither significantly overbought nor oversold but could further decline if bearish momentum persists. The Bull Bear Power (BBP) figure is -0.0049, signaling bearish market sentiment with a slight advantage for sellers.

The 4-hour price chart paints a negative picture for ADA, predicting a potential test of the support level around $0.3542 if selling pressure strengthens. A further drop might trigger a "death cross," pushing the price below the $0.3520 threshold.

Conversely, if ADA's price begins to recover and forms a "golden cross," bullish momentum could propel it towards resistance at approximately $0.3582. With consistent upside pressure, the price may rise to previous highs above the $0.3610 mark.

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