- Cardano has a short-term bearish structure after falling below the $0.4 level.
- Despite mounting sell pressure, there’s a chance of a price move toward $0.5 in the coming weeks.
As a seasoned financial analyst with years of experience in following the cryptocurrency market, I have seen my fair share of bearish and bullish trends. And based on the current price action and technical indicators of Cardano (ADA), I believe we are currently in a short-term bearish structure.
Recently, the price of Cardano (ADA) dipped below a significant level of support, according to a previous analysis. This move shed light on the prevailing market sentiment, suggesting that bearish forces were strongly in control. However, it’s essential to understand the extent of their dominance.
At AMBCrypto, we delved deeper into the price trends and examined the size of the liquidity reserves for ADA to predict its potential direction. Here’s our analysis along with suggestions for traders looking to make informed decisions.
Daily breaker block fails to halt the sellers
At the $0.4 mark, a significant level for buying was detected and labeled as a demand area for Cardano (ADA). Over the recent trading period, it momentarily acted as a support, but it has since weakened and no longer holds at present.
A daily session close below $0.402 will be a bearish signal.
As an analyst, I’ve observed that following the rupture of a prolonged falling wedge pattern, there was an expectation for a robust uptrend in Cardano’s price. However, my analysis of the DMI (Directional Movement Index) indicated a contrary trend, revealing a powerful bearish movement with both the -DI (negative directional indicator) and ADX (averaged directional index) falling below the 20 threshold.
In simpler terms, the Opposite Day Bands (OBV) failed to advance past a significant resistance point, and the Changing Money Flow (CMF) dipped below the negative threshold of -0.05, revealing substantial selling pressure in the markets. The Relative Strength Index (RSI) registered a value below the neutral 50 level, suggesting that the downward price momentum was gaining traction.
An argument for the bearish trend to reverse
As a researcher studying market trends, I’ve noticed that the technical indicators and price action didn’t provide much optimism. However, the liquidation heatmap offered some intriguing insights. Specifically, the magnetically attractive zone of liquidation levels around $0.46 to $0.48 could potentially draw prices towards them.
Is your portfolio green? Check the Cardano Profit Calculator
As a crypto investor, I’ve noticed that the liquidity pool between $0.39 and $0.4 has been depleted, which typically draws prices in that direction. However, considering the law of supply and demand, if buying pressure overpowers selling pressure, we may witness an upward price trend from hereon.
Despite the challenge of minimal social media buzz and waning consumer interest, the purchasers must strive to reach their goal.
Read More
- CTK PREDICTION. CTK cryptocurrency
- CTXC PREDICTION. CTXC cryptocurrency
- OKB PREDICTION. OKB cryptocurrency
- ZIG PREDICTION. ZIG cryptocurrency
- EUR JPY PREDICTION
- LDO PREDICTION. LDO cryptocurrency
- IMX PREDICTION. IMX cryptocurrency
- CRV PREDICTION. CRV cryptocurrency
- AGI PREDICTION. AGI cryptocurrency
- Jennifer Lopez Makes First Onstage Appearance Amid Ben Affleck Divorce
2024-07-26 00:07