Cardano (ADA) Under Pressure: Is a Breakdown or Breakout on the Horizon?

• Cardano is currently trading around $0.81.
• ADA’s trading volume has surged by over 48%.

The crypto market chose to trade on the downside today, with the majority of the assets painted in red. The largest assets, Bitcoin and Ethereum, trade at $118.7K and $3.6K. Among the altcoins, Cardano (ADA) has been trapped in the bear hold, dropping by over 2.97% in the last 24 hours. 

ADA has opened the day trading at the highest level of $0.8391. With the wave of the potent bears, the altcoin price has slipped to a low range of $0.7657. At press time, Cardano traded at around $0.8123, with its daily trading volume up by over 48.38%, reaching $2.35 billion. Meanwhile, the ADA market has faced a $13.87 million 24-hour liquidation during the period. 

Cardano has recorded a gain of over 39.31% in the last thirty days. The asset began trading at around $0.58. ADA’s monthly low was marked at the $0.54 level, and then, gradually, with the bullish shift in the market, the asset’s price has ascended toward a high of $0.92. 

Will Cardano Sink Deeper or Find Its Footing?

The Moving Average Convergence Divergence line of Cardano crosses below the zero line, and the signal line is just above it, indicating an overall bearish signal. If the MACD rises above the signal line and moves up, it could be a bullish reversal. In addition, the Chaikin Money Flow (CMF) indicator value found at 0.06 suggests that the money is flowing into the asset, with moderate buying pressure in the market. Also, the price action may show gradual or sideways upward movement. 

The four-hour price chart of ADA shows a steady downside correction. If the death cross emerges, the bears might push the price down to its previous lows. In this case, Cardano could test the crucial support ranges at $0.8117 and below $0.8111. Assuming a bullish reversal of Cardano, the price might immediately climb and test the resistance at around $0.8129. A breakout could open the gate for more upside, and forming a golden cross would drive the price above the $0.8136 level. 

Cardano’s Bull Bear Power (BBP) reading of -0.0446 implies that the bears are dominant, and pushing the price down. Further plunge may hint at deepening downside momentum. Moreover, the asset’s daily Relative Strength Index (RSI) is positioned at 41.56, pointing to a neutral to slightly bearish. If the value keeps falling, it might reach the oversold zone.

Highlighted Crypto News

DOGE in Freefall: Will It Snap Back or Sink Further?