Cardano (ADA) Trades Sideways After Losing Major Support, Will The Current Support Hold?
Cardano has depreciated on its chart considerably over the past few
days taking away most of the weekly gains. Over the last 24 hours,
ADA lost 2% of its value dragging price down to $0.42 on the four
hour chart. ADA lost critical support of $0.44 which it tried to
defend multiple times. After sloping downwards, now the coin has
been trading laterally. The next major support level for ADA lies
beneath the $0.40 mark. Technical outlook reflected bearishness on
the chart. If ADA continues to display mundane price movement then
it is only a matter of time till it loses its current support line.
Buying strength fell significantly as buyers have lost confidence.
Continuation of the present price trajectory will favour the
sellers. The existing price range could prove as a buy opportunity.
If buyers act on it, Cardano might witness relief on its chart.
Cardano Price Analysis: Four Hour Chart ADA’s price traded sideways
after it lost its crucial support of $0.44. At the moment, the coin
has managed to flip its support level and transformed it into the
resistance level. Overhead price ceiling stood at $0.44. With help
of buyers the coin can attempt to revisit its aforementioned price
level. If buyers do not come to rescue then Cardano is set to lose
another 9% of its value. Critical support for the coin was at
$0.38. Trading volume seemed to have risen today indicating that
sellers have dominated the price action. The red trading bar
signified the same on the four hour chart. Technical Analysis ADA
displayed a fall in buying pressure after the coin lost crucial
support. As sellers continue to dominate the market, the Relative
Strength Index displayed the same reading. RSI was seen below the
half-line after trying to slowly rise on the chart. Fresh sell-off
displayed a downtick on the RSI. The price of Cardano was below the
20-SMA which meant that selling momentum was strong. This reading
indicated that sellers were driving the price momentum at the
moment. Related Reading | Litecoin Rejected At $55, Bears Might
Drag LTC Below Immediate Support Line ADA in accordance with the
other indicators displayed negative price direction on the chart.
The Directional Movement Index determines the price trend. DMI
displayed negative price trend as the -DI (Orange) line was above
the +DI (Blue) line. The Average Directional Index (Red) was below
the 40-mark and this determines strength in the current price
trend. Continued movement downwards will drag Cardano to $0.40 and
then to $0.38. Moving Average Convergence Divergence depicts price
momentum and reversals of trends. MACD portrayed green signal bars
which signified a buy signal for the coin. Related Reading |
Cardano (ADA) Price Remains Low Despite Buzz Around Vasil Hard Fork
Featured image from UnSplash , charts from TradingView.com
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