- Cardano price analysis shows price is back down to the $0.805 support level
- Price needs to hold current levels in order to avoid slide down to $0.38
- Over the past 24 hours, ADA price slipped 1 percent with trading volume falling 10 percent
Cardano price analysis is bearish again, after a minor ascent over the last two days that pushed price as high as $0.89. Falling more than 1 percent over the past 24 hours, ADA reached as low as $0.786, with trading volume dropping over 10 percent. With the current decline, ADA is now expected to test the $0.805 support where it stands at current price. If it fails to hold this level, a 50 percent crash could follow, pushing the token down towards $0.38. Conversely, a 24-hour close above the $1 mark would instigate a new upturn and invalidate the bearish thesis.
The larger cryptocurrency market also declined, as Bitcoin fell back below $39,000 with a 2 percent downfall. Ethereum also pulled back, but stayed above the $2,500 mark with a 1.5 percent decline. Among Altcoins, Terra underwent the biggest decline with a 9 percent crash. Ripple and Dogecoin went down 2 percent each, at $0.73 and $81.10, respectively. Conversely, Polkadot went up 4 percent to $17.71 and Litecoin rose up to $103.07.
Cardano price analysis: ADA faces lowly market valuation on daily chart
The 24-hour candlestick chart for Cardano price analysis verifies the newfound decline that began yesterday. Price is now testing the $0.805 support and could be in line for a crash further. The relative strength index (RSI) shows a lowly market valuation for ADA at 37.92 which coupled with a loss of trading volume forms a bearish outlook for the token. Price is currently trading around $0.789, and could move down to $0.381 if further sell offs take place over the next 24 hours.
On the buyers’ end, they will look to push price towards the 25-day exponential moving average (EMA) at $0.824. However, any movement beyond the EMA has been capped over the last 4 months, leading to an extended bearish period. A decisive close above the current EMA would provide an encouraging sign for buyers and validate a push towards $1. The moving average convergence divergence in this respect can be seen as a neutral indicator, sitting just on the neutral zone below the zero mark.