Cardano has seen a significant decline in its charts over the past week. ADA is currently in a freefall after losing support at $0.62. According to the daily chart, the coin trades in a decreasing channel. ADA now has $0.42 support.
The chart has seen a decrease in buying pressure as ADA continues to show bearish sentiment. Bulls favor sellers, and the coin could break below that support level if this trend continues.
According to technical analysis, it seems that Cardano will continue falling before it sees an upward trend. Although a strong recovery cannot yet be expected, buyers could re-enter market to see some relief.
Today, the global cryptocurrency market is worth $914 billion. 0.3%Positive changes in the past 24 hours
Cardano Price Analysis: Four Hour Chart
On the 4-hour chart, ADA trades at $0.46 The coin’s value has declined significantly since it broke the $0.62 mark. In the last week the coin’s market value has fallen by 4.8%. In the past few days, it has oscillated mostly between $0.47 (or $0.45) and $0.45 (or both).
Support for the coin was local at $0.42 and resistance for ADA at $0.53. It seems hard to see a rise above $0.47 given the low buying strength.
A decrease in the volume of ADA traded indicates bearish pressure. A red volume bar indicated negative price action.
Technical Analysis
Altcoin suffered a drop in purchasing power after trying to recover quickly from the chart. The market was pushed out by the fresh drop on the chart. Relative Strength Index displayed a decrease as it was close to the 40 mark.
This meant that the number of buyers and sellers was higher than those who bought. ADA was lower than the 20 SMA, which indicated that sellers were driving price momentum. If the market returns to normal, then ADA could push its way over the 20 SMA line and gain some bullishness during the next trading session.
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Capital outflows increased in response to the fall in buying pressure. Chaikin Money flow shows market capital inflows. CMF was below the zero line, meaning that capital outflows were lower than inflows.
As a result, the market is experiencing increased selling pressure. This index shows price momentum as well as possible reversals.
DMI was bullish because the -DI was greater than the +DI. An indicator of weakness in price momentum is the ADX (red).
Buyers are required to buy the market in order for Cardano’s northbound movement to occur.
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Featured Image from The Forbes.com. Chart by TradingView.com.