Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
The 2021 hype behind Cardano saw the price register make huge gains. Still, the majority of newly arrived investors from the past year seem to be losing money. Its failure to sustain the psychologically significant $1 level over the past few months meant the asset could once again slide south. The coin has a correlation of +0.76 with Bitcoin. At the same time, it does not react as strongly to a bullish Bitcoin as it does to a bearish. These factors could increase the selling pressure for Cardano again.
In the charts, the relentless downward trend of the price in recent months was clearly visible. In December, the $1.2 support was hailed as a must-hold level for the bulls. In the same regard, the $1 level was held in late January and early February. Both levels have been broken. As of going to press, the price appeared to be headed for a daily close below the $0.817 level.
To reverse the long-term bias from bearish to bullish, ADA needs to flip the $1 to support. The price has seen demand of $0.75 in the near term, but it was unlikely to keep ADA in the charts.
The RSI formed a bullish divergence (white) as the RSI made higher lows while the price made lower lows. However, the predominant trend in recent weeks has been bearish hence this divergence is unlikely to change the trend. In addition, the price has already started to fall.
The Awesome Oscillator stayed well below zero. So momentum was solid on the bears side. The OBV has also moved south, an indication that the selling volume was higher than the buying volume on the daily timeframe. The CVD indicator was also in bear territory.
Overall, the indicators pointed to momentum and sales volume both pointing to a downtrend. The market structure was also bearish and the $1 resistance zone should be beaten. As things stand, this was an unlikely outcome. In the south, $0.75 and $0.69 could see a small bounce.
This post Cardano holders can expect these results if buyers remain elusive
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