Cardano (ADA)Crypto News

The key support line for Cardano price lies here as the coin moves south

Of the Cardano-Price has fallen sharply in the past trading sessions. The altcoin is currently trading in a descending triangle pattern. This means that the coin could be headed for another decline if it fails to break some key price ceilings.

In the past 24 hours, ADA is down 1.3%. On a weekly timeframe, the altcoin price moved in the same range. In the last few weeks he has Cardano Price hit new highs. This reading is tied to bullish price action; However, the bulls lost strength.

It is safe to say that ADA is currently in a price correction phase. ADA must not lose two of its key price floors. This would mean that the bears could take over. Since the coin is currently plotting a descending wedge, it could be possible for ADA to touch its nearest support level.

After revisiting the support line, it will likely bounce back again. the market capitalization The altcoin has also seen a decline, which has coincided with a fall in the asset price.

Cardano Price Analysis: One-Day Chart

The key support line for Cardano price lies here as the coin moves south, Crypto Trading NewsCardano was priced at $0.31 on the one-day chart | Source: ADAUSD on TradingView

ADA was exchanging hands at $0.31 at press time. The immediate Resistance for Cardano was $0.34; The bulls tested this level, but the altcoin faced selling pressure. The two main resistance levels for the coin stand at $0.34 and $0.36, respectively.

ADA was trading extremely close to its crucial $0.30 support line. The bulls may lose stamina if they push the coin to $0.28. Cardano price will crash if it fails to stay above the $0.28 level. The ADA quantity traded in the last session was up and in red, representing bearish sentiment and selling strength.

Technical Analysis

The key support line for Cardano price lies here as the coin moves south, Crypto Trading NewsCardano noticed a drop in purchasing power on the one-day chart | Source: ADAUSD on TradingView

Investor confidence in the altcoin has steadily declined over the past few months, and while ADA is making slight progress, demand has waned over the past few weeks. The Relative Strength index fell below the 40 level and approached the oversold territory. In this case, ADA could fall through at $0.28.

Due to the lower demand, Cardano price moved below the 20-Simple Moving Average line. This meant that the sellers drove the price momentum in the market. A move above the 20 SMA line will help buyers regain confidence.

The key support line for Cardano price lies here as the coin moves south, Crypto Trading NewsCardano showed positive capital inflow on the one-day chart | Source: ADAUSD on TradingView

Even on a shorter time frame, overall price momentum pointed to negative price action. The Directional Movement Index, which depicts the price movement and strength of a trend, was down. The -DI line (orange) was above the +DI line (blue).

The Average Directional Index moved below the 40 mark; this could indicate that the altcoin’s current price momentum could represent a trend reversal. Chaikin cash flow remained positive as the indicator was above the halfway line, showing that capital inflows were still dominating outflows at press time.

Featured image from Unsplash, Chart: TradingView.com

Source: Crypto News Deutsch

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