Following the negative sentiment in the crypto markets, ADA, Cardano’s native token, has slammed below the $1 mark. Despite a wick below on Saturday, this level is the lowest since April 2021. ADA is now 68% below its ATH from September.
Key Support levels: $0.9, $0.67-0.7
Key Resistance levels: $1, $1.2
ADA seemed to find a temp relief over the weekend, but this quickly changed on Monday (as of writing this) when the price tanked.
The bears appear to have complete control of the market, as it seems like ADA is heading quickly to reach the next support at $0.9. If the latter won’t hold, the next major support area is further below – $0.67-0.7 (Fib level + February’s low).
Trading Volume: High volume followed the most recent crash which is a bearish sign and a red flag. The last six out of seven daily candles were red.
RSI: The daily RSI crashed after the most recent high at $1.6, going from 65 points to 36. This tells on sustained selling pressure. However, the RSI has yet to enter the oversold area, indicating that the sell-off has not ended yet.
MACD: Last Friday, the daily MACD made a bearish crossover, which only accelerated over the following days. There is no sign of a possible reversal at the moment.
The current bias is bearish. ADA also went through a lower low in 2022, which is indicative of a downtrend.
Short-Term Prediction for ADA Price
Due to a lack of buyers, and just like the negative sentiment of the crypto markets, ADA’s price has continued to decline over the past week with a very minor bounce that took place during the weekend.
Today, the price continued South. For this reason, it is too early to expect a reversal and the most probable case for Cardano is a bearish continuation, turning the $1 into solid resistance.
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Cryptocurrency charts by TradingView.