Analyse: beweegt Cardano (ADA) richting de 21 of 18 cent? - ELEVENEWS
Cardano is in a sharp decline after last week’s nice rise. It was inevitable that a decline would follow the green candles, but now the graph shows a very worrying picture. The hard rejection of the...
Cardano is in a sharp decline after last week’s nice rise. It was inevitable that a decline would follow the green candles, but now the graph shows a very worrying picture. The hard rejection of the resistance has brought the price of this cryptocurrency back to 24 cents, and the ‘million dollar question’ is now whether this support will hold. This is going to be exciting!
Cardano’s price position
The graph below shows the price fluctuations of Cardano from the beginning of this year to now. We have had a number of nice increases, sometimes amounting to tens of percent. This created a wave of optimism, but unfortunately this always turned out to be only temporary.
Cardano currently faces two challenges. The first and most crucial challenge for this cryptocurrency is to maintain support around 24 cents. Although many analysts are still optimistic because the price is still well above this support, it is noticeable that the increases from this level are smaller and smaller. Simply put, this means that the strength of the support is slowly but surely decreasing…
The second challenge concerns the Bull Market Support Band, an indicator I often use when analyzing Bitcoin. This indicator shows the trend of the cryptocurrency. If the price is above this band we are in a bull trend, but if the price falls below it we are in a bear trend. Only when Cardano manages to rise clearly above this indicator will the chart really look positive. This has not yet been achieved and remains a major challenge for the coming weeks and months.
Interim conclusion
If we do not see a strong increase from the 25 cent price level within a short time, the chance that this support will hold is small. In that scenario we have to look at alternative support levels, such as 21 cents or even 18 cents.
Is the ADA/BTC making a fakeout?
Unfortunately, Cardano not only looks negative on the ADA/USD chart, but also on the ADA/BTC chart. This chart shows the valuation of the cryptocurrency compared to Bitcoin and essentially indicates which of the two is performing better. When the price is high, Cardano does well; if the price is low, it is the other way around.
Below you see the 4-hour chart, and it becomes clear that the price has lost an important trend line. This trend line dates back to 2019, and the price has not fallen since. If we get more confirmation that this trend line is really lost, then the bottom for Cardano is still far from in sight.
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