- Cardano gained by 7.4% over a single 48-hour period
- Spot CVD and the On-Balance Volume indicator both flashed bearish signals
As an experienced analyst, I have closely monitored the recent price action of Cardano (ADA), and based on the available technical indicators, my opinion is that the trend remains bearish. While ADA saw a significant gain of 7.4% over a short period, this bounce hardly registers against the losses incurred since March.
The daily chart showed that Cardano (ADA) had been declining, but it managed to rise by 7.4% from its recent lows on Wednesday. However, based on technical analysis, the path forward for market bulls to reverse this downward trend and regain control would be challenging.
Bitcoin [BTC] experienced a significant 8% surge since its previous lows on Wednesday, instigating a broader market upturn. Notwithstanding its growing acceptance among the public, Bitcoin Core developer Matt Corallo voiced concern about the future. He expressed his concerns, stating that Bitcoin seems to be drifting from its role as a symbol of freedom and straying away from the initial Bitcoin community’s vision.
Cardano’s price action also appears bleak
As a researcher analyzing the daily price chart, I noticed that the recent price bounce made little impact against the backdrop of significant losses incurred since March. The Relative Strength Index (RSI) reading of 46.8 suggested neutral momentum, but the price action depicted a robust downtrend, as evidenced by a succession of lower highs and lower lows.
The resistance level prevented the OBV from advancing for the ADA chart, highlighting the presence of significant selling forces. Another factor added to the bearish outlook for Cardano’s price prediction.
Two discrepancies on the daily chart, marked in white, are worth noting. The first one, around the $0.48-$0.5 range, hasn’t been challenged again and might hinder further gains for buyers in the near term.
Sentiment not bullish yet
As an analyst, I’ve noticed that the Open Interest for Cardano has been on the rise in May. However, during the latest price surge, this increase wasn’t as pronounced. This suggests that investors have been cautious about entering new long positions on ADA.
Read Cardano’s [ADA] Price Prediction 2024-25
As an analyst, I would express it this way: The outlook for Cardano’s price remains bearish, with the next downside target at approximately $0.3, representing a 23.6% extension from the recent decline. This pessimistic view is supported by the prolonged sell-off in the Cardano spot market, which continues to indicate significant selling pressure among investors.
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2024-05-16 23:03