Disclaimer: The findings of the following analysis are the authors’ sole opinions and should not be considered investment advice.
There have been some positive developments behind Cardano in recent days. The Cardano community voted Project Catalyst Fund seven in March and will vote on Fund eight shortly. This venture will be used to develop the Cardano ecosystem, with a particular focus on the NFT arena.
Another bit of positive news was that in April the number of addresses with ADA soared to a record high of 5.2 million. Still, allegations have been made against Cardano for being a “ghost chain”.
ADA also performed poorly on the charts as November’s downward trend continued.
ADA- 1-Day Chart
Source: ADA/USDT on TradingView
The pattern of the falling wedge appeared to be breaking through in mid-March, but this rally was unable to break a key $1.26 level. Sellers were encouraged by this development and have been relentless ever since, managing to drive ADA south to $0.4.
At the time of writing, the entire crypto market saw a relief and ADA was one of the coins to record double-digit percentage gains within a 24-hour time frame. However, the trend and market structure remain overwhelmingly bearish. The $0.8-$0.9 could present opportunities to sell or short.
rode
Source: ADA/USDT on TradingView
The mid-March rally was the only time in 2022 where the RSI managed to stay above the neutral 50 line for more than a few days in a row. Otherwise, the RSI was below this figure to indicate the presence of a bearish trend. At the time of writing, the RSI was recovering from a decline to 24.24.
The Stochastic RSI also formed a bullish crossover in the oversold territory, responding to the gains from $0.4. However, the OBV has been in free fall for the past few days, showing no signs of recovery.
Conclusion
Buyers beware, as the trend was favorable for the sellers. Winter had arrived months ago and there were no signs of a thaw, let alone spring. The bearish structure would be broken if ADA can climb past $0.9, in which case the $0.6 and $0.78 levels could be retested as support.
This post Cardano: Despite $0.4 demand, here’s why ADA’s path to recovery looks bleak
was published first on https://ambcrypto.com/cardano-despite-demand-at-0-4-heres-why-adas-path-to-recovery-seems-bleak/
