Cardano (ADA) price has been unstable following larger market trends. Bitcoin slid as much as 20% over the past week with major altcoins moving on. Bitcoin’s revision to levels it hasn’t touched for months has caused other altcoins to crash considerably.

In just 24 hours, ADA plummeted 20%, and in the last seven days, the coin has seen a more than 30% loss in market value. ADA has been one of the worst performing altcoins of the month, causing investors and buyers to leave the market.

Continued selling could see the coin drop further and rest near the $0.40 mark. Amid other worrying factors such as rising inflation, rising interest rates, and an impending recession, broader market weakness could continue to weigh on the stability of the crypto industry.

Cardano Price Analysis: Four Hour Chart

The ADA price at the time of writing was $0.50, marking a drop of more than 60% from its all-time high of $3 last year in September. The coin has almost noted a 35-week downtrend and the recent bearish price move has made it nearly impossible for the coin to show any chance of a bounce. The coin continues to paint extreme oversold conditions.

Cardano was priced at $0.50 on the four-hour chart | Source: ADAUSD on TradingView

The coin showed a downward trend (yellow) affirming the bearish thesis. At the current price level, Cardano could find a support level at $0.40.

Investors could fight that scenario for it to be a buying opportunity that could push ADA prices higher. In the event of a bounce, which looks quite difficult, ADA could target $0.62.

Cardano volume showed a red bar which is indicative of a downtrend, it also means that the coin is experiencing a sell-off at the time of writing.

Technical analysis

Cardano was oversold on the four-hour chart | Source: ADAUSD on TradingView

Cardano had attempted to retest its $0.62 level in recent days, but the bears continued to drag the altcoin lower. At the time of writing, ADA was trading well below the 20-SMA line. This means that the sellers were driving the price momentum of the coin in the market.

After breaking out of the downtrend, ADA had briefly attempted to rally, causing the coin to revisit the overbought zone as buyers gained confidence for a short period of time, as seen in the Index of Relative Strength. However, after this, ADA barely recovered in terms of buying strength as the coin continued to juggle between the oversold and underbought zone.

Related Reading | ADA in discount? Cardano whales go shopping for $200 million

Cardano shows bearish trend on the four-hour chart | Source: ADAUSD on TardingView

The ongoing bearish thesis has dampened the spirits of investors, the coin is currently undergoing a distribution phase due to a sell-off.

The Chaikin money flow that drives capital outflows was seen below the midline. This reading meant that capital outflows were much larger than inflows.

Impressive oscillator indicating price momentum, indicates amplified red histograms. Red histograms below the zero line signify bearish price action for the coin.

Related Reading | Cardano (ADA) Actual Volume Suggests Downtrend Is Far From Over

UnSplash Featured Image, Chart from TradingView.com



This post Cardano struggles below $1, will it rest above its crucial support?

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