Cardano price analysis continues to show bearish signs, as price failed to form an uptrend on a fourth consecutive day. The current trend for ADA is set around $0.5 where there is more potential of a decline than upward movement. In this scenario, ADA could drop down to support zone at $0.35 which would bring buyers into the market and push price upwards. This could be achieved with a daily close below $0.49 if bearish behaviour continues domination over the coming day’s trade. Over the past 24 hours, Cardano trading volume fell more than 18 percent, justifying a stagnation around current price and formation of a rectangular pattern.
The larger cryptocurrency market continues to trade bearishly within the red zone, led by Bitcoin’s sustained price near $29,000. Ethereum also dropped below the $2,000 mark once again with a 2.5 percent decrement, while major Altcoins also suffered downtrends. Ripple receded 5 percent to move as low as $0.41, whereas Dogecoin dropped 2 percent to $0.08. Solana and Polkadot also declined 2 percent to $49.67 and $9.67, respectively. Similarly, Tron dropped 4 percent down to $0.07.
Cardano price analysis: Cryptocurrency heat map. Source: Coin360
Cardano price analysis: Rectangular pattern forms on daily chart
On the 24-hour candlestick chart for Cardano price analysis, price can be seen going along a rectangular pattern since May 18, 2022, when price trended down to $0.5. Since then, ADA has been unsuccessful in consolidating upwards to the $0.66 resistance floor, while a move down to support at $0.35 now seems to be on the cards. Any movement upwards will have to pierce through the crucial 50-day exponential moving average (EMA) at $0.55. Meanwhile, the relative strength index (RSI) sitting at 36.78 is showing potential increase in market valuation as price drops. ADA trading volume is also expected to pick up once price settles near support.
Cardano price analysis: 24-hour chart. Source: Trading View
The moving average convergence divergence (MACD) curve provides a positive outlook as it makes higher lows and attempts a bullish divergence above the neutral zone. Over the next 24 hours, ADA price is expected to incur minor losses and would only be able to reinstate after reaching the $0.35 support. Conversely, a bullish upturn would see price move towards the initial resistance point at $0.66 where sell offs may be expected.
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