Cardano [ADA] sees red as market braces for bear impact

The past couple of weeks have been tumultuous, to say the least for the cryptocurrency market. With Bitcoin stuck in a constant battle to break the $50k mark, the action has been more centered around altcoins. After entering the podium positions, Cardano [ADA] entered the lock-in phase with the bear.

Being the third-largest cryptocurrency comes with its own perks as new users kept up their momentum in entering the market. At press time, Cardano was going through a 4.6 percent and 6.1 percent dip in the hourly and daily timeframes respectively. The bear trap caused ADA’s price to drop to $2.36 while the daily trading volume clocked in at $2.92 billion.

Cardano was the only cryptocurrency in the top 5 that took a significant hit in its overall weekly gains. Technical indicators showed that the cryptocurrency had the potential to maintain its ranking. Cardano was still $7 billion stronger than its nearest competitor, XRP.

Cardano 1 hour:

The IOHK founded cryptocurrency held immediate support of $2.4 with users hoping for another surge to recover earlier price points.

RSI: Cardano’s short-term RSI fell towards the oversold zone on Friday. As the week comes to a close, more and more users were selling their ADA tokens.

CMF: The CMF also sided with the bear with the graph crashing below the zero line. This was a sign of massive amounts of capital leaving the Cardano market.

Parabolic SAR: All the markers since the 15th have stayed above the candles as selling momentum increased.

Cardano 1 day:

Long term support remained at $1.05, a marker formed back in May. One thing to be noted was that Cardano was one of the few cryptocurrencies that sustained its bull run longer than other alts.

Even in the long run, the indicators remained bearish as consecutive red candles took hold.

CMF: The graph mimicked the hourly pattern as capital outflow overtook the amount coming in. The dip was in stark contrast to the highs it had hit in the middle of August.

PSAR: As the price stagnated, the markers switched positions from the top of the candles. Only an increased buying pressure would boost the Parabolic SAR to the top.

Relative Strength Index: The RSI here leaned towards the oversold zone as the long-term HODLers were shaken by the price crash.