Cardano was showing a bearish trend on its chart at the time of writing. In the past 24 hours, Cardano has fallen 7% on its chart. The broader market also exhibited a bearish period over the past few days. Bitcoin is nearing the $20,000 mark and altcoins have followed suit.
Over the past few days, ADA had broken above the $0.55 resistance mark, but it failed to hold above this price mark. The bears put pressure on the market and the technical outlook also represented a downtrend on the chart.
The bullish force stalled as the market drivers depreciated significantly on their respective charts.
At the moment, Cardano is trading near the $0.42 support level. Buyers also left the market. The continued selling pressure will drag the coin below the $0.42 level to the $0.33 price mark. A push to the current price level might push ADA up slightly on the chart, but it could be termed as a brief rally.
Cardano Price Analysis: Four-Hour Chart
ADA was trading at $0.44 on the four-hour chart. The altcoin had consistently formed lower lows on the chart illustrating the downtrend. The overhead resistance of the coin stood at $0.51 and the local support level at $0.42.
After ADA reached $0.52, it failed to break the resistance mark again. Over the past week, ADA has encountered resistance at the same price.
If the buying strength returns, the coin could revisit the $0.48 level, however, the bears will remain strong until Cardano trades above the $0.52 mark for a period of time. substantial. A drop from the current price could cause ADA to touch the lows of $0.33 during the next trading sessions.
Technical analysis
ADA’s drop in value was followed by a sharp drop in buying pressure. The selling force increased, which forced the coin to pull back further on the chart. The relative strength index was below the half line and close to the oversold zone.
However, the RSI has bounced back into the oversold territory, it is too early to tell if in the next few sessions the coin might recover on its chart. Cardano’s price was below the 20-SMA line, which indicated that the sellers were responsible for the price momentum in the market.
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The altcoin reflects the decline in buying strength on the four-hour chart. Moving Average Convergence Divergence depicts price momentum and reversals in the same. MACD underwent a bearish crossover and formed red histograms that indicated a sell signal for ADA.
Consistent with buyers exiting the market, Chaikin Money Flow which depicts capital inflows and surpasses flows depicted increased capital outflows in the market. To defeat the bears, the coin needs to break above the $0.52 mark and consistently show buying strength.
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Featured image from UnSplash, chart from TradingView.com