Disclaimer: The findings of the following analysis are the authors’ sole opinions and should not be considered investment advice.

Cardano sees some relief at $0.36 Dead cat bounce or can the bulls push the ADA back above $0.4?

At the time of writing, Bitcoin [BTC] moved higher towards the $19.6k resistance. Over the weekend, the price had managed to defend the $19k support. While Bitcoin’s hopes of a move above $19.6k remain alive, Cardano bulls may hold some hopes as well. A turnaround, however, did not seem likely.

Here’s AMBCrypto’s Price Prediction for Cardano [ADA] in 2022

A recent article highlighted the importance of the $0.4 area from a technical perspective. The higher time frame market structure was bearish and there were likely new lows for Cardano.

The drop below USD 0.4 was ominous, are there more losses to come?

Source: TradingView

The Bollinger bands (blue) widened over the past week as ADA slid below the $0.41 support level. The lower band has seen no halt to the price decline in recent days. However, this could have changed at the USD 0.36 level.

At $0.363, Cardano stopped his descent. The daily Relative Strength Index (RSI) had fallen to 23.4. This low value showed extreme oversold conditions and sooner or later a bounce would be likely. How high can this bounce go?

The 20-period moving average (orange) coincided with the horizontal level of $0.41. The small band between $0.416 and $0.403 indicated an inefficiency in the price charts and was likely to fill up in the coming days. Therefore, shortsellers can search for listings in that area.

In the south, another support level was at $0.336, and bears may try to make gains near this level.

Funding rate no longer strongly bearish

Source: Santiment

The number of active addresses has steadily decreased over the past month. In addition, last week’s plunge below the USD 0.4 bullish bastion caused funding rates to plummet as well. Futures traders turned strongly bearish and piled into short positions.

At the time of writing, the funding ratio was just above 0%, suggesting a more neutral view of the futures market. Combined with the technical findings, a jump to $0.4 can be expected.



This post Cardano finds some support at $0.36, but the downtrend remains unbeaten

was published first on https://ambcrypto.com/cardano-finds-some-support-at-0-36-but-the-downtrend-remains-unbeaten/

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