Cardano [ADA/USD] Technical Analysis: Bears tighten their grip on the bull’s neck


After experiencing sideways movement for a long time, Cardano [ADA] has moved on a minor scale, though it has moved to only become more bearish. At the time of writing, ADA, the ninth-largest cryptocurrency token in the world, was down by 1.16%, trading at a depressed price of $0.073 with a market cap of $1.91 billion. Its total 24-hour trading volume was observed to be over $14 million.

1-hour:

ADAUSD 1-hour candlesticks | Source: tradingview

ADAUSD 1-hour candlesticks | Source: tradingview

In this scenario, the immediate resistance is set at $0.076, whereas the support is fixed at $0.74 on the ADA chart.

The Parabolic SAR indicator is bullish on Cardano, flashing a green light at the price trend. The dots are currently floating below the ADA candles to cheer up the market.

The Awesome Oscillator is glowing green and is predicting a healthy price trend for the cryptocurrency.

1-day:

ADAUSD 1-day candlesticks | Source: tradingview

ADAUSD 1-day candlesticks | Source: tradingview

In the one-day timeline, the downward trendline from $0.173 to $0.086 and the upward trendline from $0.063 to $0.07 are not likely to converge as of now. More so, the resistance line is seemingly forming a descending triangle on the ADA chart showing a declining trend for the coin.

The Bollinger Bands are predicting low volatility for the Cardano market. Almost a month ago, the bands left a wider gap between them, but have narrowed down to push the market into a sideways trend.

The RSI was in the bullish zone, but turned its head downwards and is currently approaching the bear’s den.

Similarly, the Chaikin Money Flow indicator is waving a red flag by traveling in the lower portion of the chart. It is suggestive of a downward trend for the ADA token.

Conclusion:

In the short-term, the indicators have predicted a bullish market for the coin, but the longer timeline is suggesting a danger zone, as stated by RSI and Chaikin Money Flow. However, the Bollinger Bands are not predictive of much volatility in the market, projecting sideways movement of the market.



Source link

Comments (No)

Leave a Reply