Cardano price analysis reveals a bearish trend. The ADA/USD pair is presently trading at $0.3349 and has been moving in a downward pattern for the past 24 hours. The pair’s support level is at $0.3331, while its resistance level is at $0.3441.
In the last 24 hours, the cryptocurrency’s value has decreased by more than 1.10%. Over the previous few days, the trade volume has also drastically fallen. The market capitalization is $11 billion but the trading volume has dropped to $290 million. The cryptocurrency pair ranks #9 in the broader market.
ADA/USD 1-day price chart: Prices slowly pivot below $0.34 as bears take control
Cardano price analysis on the 1-day price chart reveals that ADA prices had been circling about the $0.3349 price level for the majority of the day, but in the later hours, the bears took control and drove prices below the support level of $0.3331.If the bears are successful in keeping the market under their grip, a breach of this support level might result in more price declines to the $0.32 level. Price retests of the $0.34 resistance level, however, are conceivable if the bulls are able to regain control.
ADA/USD 1-day price, source: TradingView
On the technical front, the MACD line (blue) crossing below the signal line suggests a bearish crossover, according to the moving average convergence/divergence histogram (red). This indicates that the momentum is likely to continue moving downward in the foreseeable future. There are no extremes seen in the relative strength index, which is now at 45.02, indicating that neither the market is oversold nor overbought.
ADA/USD 4-hour price chart: Bearish trend likely to continue
Cardano price analysis reveals that the bears are once again in the lead on the hourly price chart due to the price’s downward trend during the previous four hours. Even though the price trends have been constantly changing over the last few hours, the bears are now in the lead. The value of the currency has decreased to $0.3348 as a result of the bears’ effective return. The moving average convergence (MACD) value, though, is substantially higher, at $0.3385.
ADA/USD 4-hour price chart, source: TradingView
The relative strength index is pointing to the oversold region proving weak buying activity and a possibility to the downside. It is currently at the 45.65 level. The Bollinger band indicator shows contracting bands revealing declining volatility in the market. The upper band is at the $0.3449 level while the lower band is at the $0.322 mark. Investors should therefore be careful before making further decisions.
Cardano price analysis conclusion
To conclude, it is worth watching the resistance level for ADA prices as this will give a strong indication of where prices are likely to head next. If buyers can hold this level and push prices higher, then a bullish reversal may be on the cards. Conversely, if the bears manage to break through and push prices lower, then a continuation of the downtrend could be on the card.
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