The larger market movements have caused the price of Cardano to be volatile. Over the last week, Bitcoin fell to 20% and other major altcoins followed suit. Bitcoin’s revisit to levels that it hasn’t touched for months has caused other altcoins to plummet considerably.
In less than 24 hour, ADA dropped 20%. The coin has also suffered a more drastic 30% decline in value over the past seven trading days. ADA is one of most underperforming altcoins in the last month, causing both buyers and sellers to flee the markets.
The coin could continue to fall and settle near the $0.40 mark if it is sold off. In addition to other concerns, like rising inflation and hiked interest rates as well as a threat of recession, market weakness may continue to affect the stability in the crypto sector.
Cardano Price Analysis: Four Hour Chart
ADA’s price at the time of writing stood at $0.50 which marks more 60% fall from its all all time high of $3 last year, September. It has been in a downtrend for 35 weeks and recent bearish movements have made it almost impossible to see any signs of recovery. It continues to show extreme levels of oversold.
According to the coin’s yellow color, it showed a downtrend (indicating a bearish thesis). Cardano may find support around $0.40 at the current price.
Investors might fight that scenario to be a buying opportunity which could lift ADA’s prices upward. ADA could reach $0.62 in case there is a rebound. That seems very unlikely.
Volume of Cardano showed a red bar, which indicates that Cardano is bearish. This also suggests that Cardano is currently experiencing selloff.
Technical Analysis
Cardano tried to test its $0.62 level over the last few days, but the bears kept the altcoin from falling. ADA traded far below its 20-SMA level at the time this article was written. This suggests that buyers were driving market price momentum.
After breaking away from the downward trend, ADA attempted to rally briefly which made the coin return to the overbought region. Buyers gained confidence for a short time according the Relative Strength Index. ADA’s buying power was not able to recover after this as it continued to oscillate between the underbought and oversold zones.
Similar Reading: ADA on Discount| ADA On Discount? Cardano Whales Take $200M Shopping Spree
The current bearish thesis has dampened investors’ spirits. The coin currently experiences a distribution stage due to a selling.
Chaikin’s Money Flow, which measures capital outflows, was below the halfline. This meant that capital outflows were significantly higher than those inflows.
The Awesome Oscillator, which tells price momentum, is indicated by amplified red histograms. A red histogram under the zero-line indicates bearish price action.
Similar Reading: Cardano (ADA), Real Volume Suggestions a Downtrend is Far from Over| Cardano (ADA) Real Volume Suggests Downtrend Is Far From Over
Featured Image from UnSplash. Chart by TradingView.com
