CARDANO Token Price Analysis: ADA Token Price is in a Downtrend, What Next?

• Cardano Token price is trading in a downward parallel channel.
• The token is resting at the long term demand zone.
• The pair of ADA/BTC is trading at 0.00002298 with a 1.06% increase in the market cap of the digital asset over the past 24 hours.

Cardano Token price has been trading downward parallel for the past trading days. The token forms lower lows and lower high formations on a daily time frame. The token recently broke out of 20 EMA but failed to sustain above and again fell. The token is yet to give the breakout of 50 EMA and 100 EMA. At present, the token is trading below all the important Exponential Moving Average(20,50,100) and thus could face rejection moving upwards. Cardano token price is trading at the lower band of the Bollinger band indicator. The Bollinger bandwidth is narrowing, indicating a big move on either side. Volumes have increased and are flowing from both buyers’ and sellers’ sides. If the bulls can take control, the token price can reach up to long term supply zone at $1.2, and if the bears take control, the token’s price can come thrashing down to long term demand zone of $0.74.

Cardano Token Price is Resting at a Long Term Demand Zone on a Weekly Time Frame

Cardano token price on the daily time frame is falling, and it is the same on the weekly time frame. The technical parameters suggest the same.

Average Directional Movement Index: ADX has continuously dipped as the coin started falling from the recent high. Recently, it slipped below 15. At present, the ADX curve is 14.85, and thus it follows the coin price. If the ADA token price continues to fall further below the supply zone, the Curve can be seen falling, and it will become difficult to recover in the near future.

Relative Strength Indicator: RSI is trading at 35.98 after the token faced rejection and fell. The RSI curve fell out of the 50 halfway mark and is also downtrend since the token started falling. The token is currently trading below the halfway mark of 50, and now the token price can fall to $0.7 if the bulls do not take control. The RSI curve has crossed the 20 SMA curve, indicating a bearish trend for the long term.

MACD and Supertrend are Showing Bearish Signs on Daily Time Frame

Source: ADA/USDT by tradingview

Cardano token price is moving in a downtrend, and technical parameters suggest the same.

Supertrend: Recent bullishness in the price of the ADA token has not affected the super trend indicator. The sell signal from the supertrend indicator is still intact. ADA token price can face resistance from the super trend trendline at $1.085. The token made a long wick rejection candle at the super trend line, thus indicating a bearish trend for a short-term period. The trend can become super bullish if the token surpasses the trend trendline at $1.085, resulting in an indicator giving a buy signal.

Moving Average Convergence Divergence (Bullish): MACD indicates a bearish trend on the daily time frame, giving a negative crossover. The seller’s (orange) line crossed the buyer’s (blue) signal line on the downside. Recently, the blue line touched the seller’s line and fell. If the token breaks the green trendline, then the token can move higher.

Conclusion

ADA token price is showing bearishness, and there seems no hope for recovery as the token is continuously falling. It remains to see if the token sustains at the current level or bears take the control to push the price further down.

SUPPORT: $0.75 – $0.72

RESISTANCE: $1.4 – $1.6

Disclaimer 

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.