7.1 C
Amsterdam
28 March 2024
PumpMoonshot
Image default
Altcoins

Cardano price analysis: ADA trading within decisive phase with bears taking control

  • Cardano price lowered from $2.25 to $2.19 on the day’s trade, recording a decline of 1.5 percent
  • Trading volume rose more than 32 percent, indicating a bearish takeover
  • Price currently sits within a decisive zone with equal possibility of a bullish or bearish takeover

Cardano price analysis for the day shows a slight decline in play for the token, seemingly putting an end to a positive last week where price went as high as $2.37. Expectation at the start of the week was for ADA to continue testing the resistance point at $2.41, but a shift in trend may be on the cards according to current technical indicators. Most importantly, the dip in price has been accompanied by a sharp increase of over 32 percent in trading volume, suggesting the trading activity is dominated by selling action in the market. Any price movement below $2.1 would confirm the change in trend towards a bearish scenario.

The larger cryptocurrency market showed mixed outcomes today, with Bitcoin storming past the $57,000 mark with a 4 percent increase. Ethereum also went past $3,500 as Altcoins showed signs of struggle. Dogecoin went down 3.5 percent to $0.229, with Polkadot and Solana also dropping 3 and 4 percent each, respectively. Litecoin, however, consolidated at $180 with a slight increase.

ADA/USD 24-hour chart: Price declines along with RSI

On the 24-hour chart, Cardano price can be seen moving below the 20-day moving average with today’s price action. The support zone is once again set at $2, with the extent of the current decline unset yet. Support might come into the market if price moves below the 50-day Exponential Moving Average (EMA) at $2.18. The Relative Strength Index (RSI) has also dropped from 49.72 to 45.37 during the day, following the price decline. The overall trend seen on the 24-hour chart is bearish with the extent of current descent yet unknown.

Cardano price analysis: ADA trading within decisive phase with bears taking control 2
Cardano price analysis: 24-hour chart. Source: Trading View

ADA/USD 4-hour chart: Sellers dominating the current market

On the short-term chart for Cardano price analysis, a subsequent set of red candlesticks can be seen appearing on the market, pulling price downward to confirm a reversal in trend. Price has moved below the bottom Bollinger Bands’ curve, exhibiting a strong bearish push. The RSI has continued to dip, moving as low as 39.27 which represents a highly undervalued status for the token. Over the next few trading sessions, any buyer intervention will prove to be crucial in maintaining ADA above support at $2.

Cardano price analysis: ADA trading within decisive phase with bears taking control 3
Cardano price analysis: 4-hour chart. Source: Trading View

Cardano price analysis: Conclusion

From technical indicators, it can be seen that a downward shift in trend is on the cards for ADA. The 24 and 4-hour RSI suggests a bleak picture, with price continuing to decline. If the downward momentum continues below the $2.18 mark, buyer intervention may be expected soon to rescue price above support at $2. For incoming traders, it will be important to determine the extent of the current decent before investing.

News Source

Advertisement

Related posts

Crypto.com’s Ethereum-Based Altcoin Explodes After Deal With Iconic Arena

PumpMoonshot

Cathie Wood’s ARK Pays $88.74 Million for Twitter Shares After Dorsey’s Bitcoin-Related Statement About Company’s Future

PumpMoonshot

Cipher Mining splashes $350M on next-gen Bitcoin mining rigs from Bitfury

PumpMoonshot
Verified by MonsterInsights