Can Cardano (ADA) Stage a Comeback After the 8% Decline?

• Cardano price has plunged by over 8% falling to 0.9988.
• The trading volume of ADA has surged by over 100%.

The bullish trace in the crypto market vanishes, with the assets slipping back to their former lows. Bitcoin (BTC) trades at the $96K mark and Ethereum (ETH) at $3.3K. Focusing on altcoins, Cardano (ADA) has recorded a loss of over 8.59% in the past 24 hours.

ADA opened the day trading at $1.08 and eventually climbed to the highest trading level at $1.15. Later, the asset reached its lowest price,$0.9904. As of the current time, Cardano trades at $0.9988. 

Notably, the market has witnessed a $10.16 million ADA liquidation during the period. Meanwhile, the daily trading volume of the asset has reached $2.45 billion.

Contrarily, Cardano has gained over 16.80% in the past seven days. ADA jumped from a low of $0.8541 to a mid-week high of $1.10. However, the bullish outlook diminished, and ADA is struggling to overcome the bear trap.

Can ADA Shift to a Bullish Trend?

Looking at the four-hour technical chart of ADA, the daily relative strength index (RSI) is resting at 38. It suggests the asset is nearing oversold territory and a weaker momentum. Moreover, the asset’s daily frame exhibits the short-term 9-day MA below the long-term 21-day MA.

In addition, the Moving Average Convergence Divergence (MACD) line is found beneath the signal line, indicating a bearish sentiment in the asset’s price. This might lead to a potential downtrend or continued selling pressure. 

The Chaikin Money Flow (CMF) indicator, which assesses the capital flow, is settled at -0.20. This value confirms the negative money flow within the market. Traders might consider this as a signal to avoid long positions. Consequently, the daily trading volume of ADA has increased by over 100%. 

The recent price chart of ADA displays the downside momentum, and the price might retrace down to $0.9736. Further losses have the potential to even pull back the price lower toward the $0.9425 mark. 

Assuming ADA breaks the $1.0124 level, the asset could test and rally toward the crucial resistance level at $1.05. If the uptrend sustains, Cardano can push the price to new highs in the upcoming days.

Disclaimer: The opinion expressed in this article is solely the author’s. It does not represent any investment advice. TheNewsCrypto team encourages all to do their own research before investing.

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