- Cardano price expected to fall to $1.10 before recovering
- The closest support level lies at $1.25 and further below at $1.15
- ADA faces resistance at the $1.25 mark.
After finally climbing to the $1.50 mark, Cardano price failed to continue its bullish rally, and the price has dropped to $1.20. While Cardano price at press time holds just below $1.20, the bearish pressure is very strong, and the price may fall further in the immediate future if the selling continues.
The broader cryptocurrency market observes a bearish sentiment across the last 24 hours, with most major cryptocurrencies recording a loss across the timeframe. Notable currencies which had a loss include Ripple’s XRP and BNB that record a -23.39 and a -15.66 percent decline, respectively. Meanwhile, Bitcoin and Ethereum record a -11.46 and a -13.19 percent fall, respectively.
Technical indicators for ADA/USDT
Across the technical indicators, the MACD exhibited a bearish reversal three days ago and has remained bearish since. Recently Bearish momentum is rapidly increasing according to the increasing size of the dark red histogram and has caused Cardano price to fall below $0.03000. Meanwhile, both EMAs move downwards, and the 12-EMA is separating from the 26-EMA showing an increasing sell signal at the time of writing.
The RSI is currently trading in the neutral zone just below the 32.00 mark and has been in the neutral region for the past four days seeing high bearish momentum. However, a few hours ago, the RSI re-entered the neutral zone but now appears to be falling out once again. At press time, the RSI is moving downwards, suggesting bearish pressure at the price level.
The Bollinger bands are currently wide but will converge in the future due to the presence of dark red candlesticks. The bands’ convergence suggests a decrease in volatility for the Cardano price. Meanwhile, as the price is consolidating below the bands’ mean line, the bands will be leaning downwards for the next few candlesticks.
Overall the 4-hour technical analysis issues a “strong” sell signal with 16 of the total 26 major technical indicators suggesting their support for a bearish movement. On the other hand, zero indicators issue buy signals suggesting a bullish retracement. Meanwhile, ten indicators sit on the fence, issuing no support for either side of the market.
The 24-hour technical analysis shares this sentiment and also issues a sell signal, with 11 of the 26 indicators suggesting a bearish movement against only six indicators suggest a bullish retracement. Meanwhile, nine indicators remain neutral and do not issue any signals at the time of writing.
What to expect from Cardano price?
Cardano price finds support at the $1.20 mark, which has enabled ADA to stabilize for a while. Traders should expect ADA to observe high volatility in the short term, with the price expected to drop to $1.00 before finding strong support to recover. The negative technical analyses also suggest further downwards movement.