Cardano price prediction: $0.50 is near, but bears can pull ADA down to…

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  • Cardano has a bearish market structure after recently slipping below $0.45.
  • The imbalance immediately overhead could rebuff the buyers’ attempts at recovery.

Last month, the Decentralized Finance (DeFi) and Non-Fungible Token (NFT) sectors related to Cardano’s [ADA] experienced a decrease in value. Simultaneously, user engagement and the price of ADA itself showed a decline. The token hovered between the prices of $0.45 and $0.685 during this period.

Based on AMBCrypto’s analysis, the Cardano price forecast exhibits a bearish inclination. It’s likely that the cryptocurrency will form a trading range within the next fortnight, with possible values hovering around the $0.5 level.

Until $0.568 is flipped to support, the bulls have little power in the market.

The combination of the fair value gap and mid-range posed formidable resistance

I noticed on the one-day chart that the range formation of the previous five months was clearly visible. However, my hopes for ADA experiencing an uptrend in Q2 2024 were dashed when the price dropped below the crucial support level of $0.568.

At present, the price hovers around the middle point of its range, having been turned away from the resistance area (represented by the white zone), and found itself close to the lower end of the range once more.

The RSI has been below neutral 50 for nearly six weeks now.

As a researcher observing the market trends, I’ve noticed a clear downward trend with firm momentum. Moreover, the On-Balance Volume (OBV) has dipped beneath a significant support line (dotted white), suggesting substantial selling pressure.

Based on these considerations, it seems that the price of Cardano is more inclined towards a decline, with $0.4 serving as a significant level of potential support.

The likelihood of $0.5 being tested next

Based on the liquidation heatmap’s analysis, the prices at $0.483 and $0.527 emerged as potential focal points moving forward. With the liquidity previously existing at $0.45 now depleted, a progression towards the $0.5 to $0.52 price range seemed plausible.

As a researcher studying the price movements of Cardano, I’ve noticed a significant accumulation of sell orders around the $0.41 mark to the south. Consequently, it’s plausible that Cardano will traverse between the $0.41 and $0.51 price ranges throughout this week.

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2024-04-28 15:03