- Cardano price analysis suggests downwards movement to $1.40
- The closest support level lies at $1.500
- ADA faces resistance at the $1.580 mark
The Cardano price analysis shows that after falling to the $1.50 level, ADA was unable to recover to $1.60 and has continued falling after setting a lower high at $1.585. Currently, the price is hovering above the $1.50 support level but shows downside potential as selling continues.
The broader cryptocurrency market has observed a bearish market sentiment over the last 24-hours as most major cryptocurrencies record positive price movements. Major players include ETH and BTC recording a 10.01 and an 8.28 percent decline respectively.
Cardano price analysis: Selling pressure high as ADA consolidates at $1.50
Across the technical indicators, the MACD is currently bullish as expressed by the green color of the histogram. However, the indicator shows little to no bullish momentum as the histogram’s height is insignificant compared to a few days ago. Furthermore, the MACD has exhibited multiple crossovers across the last 24-hours as the price consolidated above the $1.500 mark.
The EMAs are currently trading at a very low position as the price trades in a downwards channel across the mid-term charts. Since November 9, Cardano price analysis has shown a steady decay as ADA crashed from highs of $2.378 to the current $1.50 support level through numerous lower highs set up across the period. These include key support levels at $2.00 and $1.80.
The RSI is currently neutral but trades low at the 35.37 index unit level suggesting a strong bearish pressure on the price action. Furthermore, the indicator trades near the oversold territory showing little room for further downwards movement across the short-term charts. At press time, the indicator moves with a low slope showing a lack of momentum from either side.
The Bollinger Bands are currently wide and continue to suggest high price volatility for ADA as the bands remain wide. While the bears breached the bands’ lower limit, it was only momentarily and the limit provides a support level at $1.442 to the buyers at press time. Meanwhile, the bands’ mean line presents a resistance level at $1.578 for the bulls to overcome.
Technical analysis for ADA/USDT
Overall, the 4-hour Cardano price analysis issues a sell signal with 13 of the 26 major technical indicators showing support to the bears. On the other hand, three of the indicators support the bulls suggesting that there is no significant buying activity occurring in the markets. Meanwhile, the remaining ten indicators sit on the fence and issue no signals at the time of writing.
The 24-hour Cardano price analysis accentuates this sentiment and issues a sell signal with 14 indicators suggesting a downwards price movement against three indicators suggesting an upward price movement. The analysis reaffirms the bearish dominance in the markets, suggesting strong selling pressure weighing on the price action across the mid-term charts. At the same time, nine indicators are neutral and do not lean towards either side at press time.
What to expect from the Cardano price analysis?
The Cardano price analysis shows that ADA is currently stuck in a downwards channel and continues to move downwards breaking lower support levels. While the price currently trades above the $1.50 support level, the selling pressure continues to haunt the bulls since November 10.
Currently, traders should expect the Cardano price analysis to move downwards to the $1.40 support level as the selling continues. However, the price action can be expected to hold the level as the bears are exhausted as well. If the buyers prevent further downwards movement, then the price may start its recovery towards the $2.00 mark in the next few days.