Why is Cardano’s latest support level important after recent losses

warning: The results of the following analysis are the author’s opinions only and should not be considered investment advice.

  • Cardano drops below lows again
  • Buyers have defended $0.42…so far

Cardano [ADA] It was expected to rise in the price lists after the printing of the hard fork Vasil. With that said, the price has continued its bearish trend, and the good news may not be enough to change the bearish backdrop that the cryptocurrency market has seen in recent months.

Technical indicators have not painted a bright bullish scenario for the coming weeks. Bitcoin [BTC] It could cause a change in sentiment, but the $20.8000 and $22.5000 resistances must be overcome first to change the long-term trend.

The bottoms of the range are broken as the bulls struggle to keep fighting

Source: ADA / USDT on TradingView

Since May, Cardano has traded in a range from $0.64 to $0.44. Highlighted in white, the midpoint of this range (dashed white) was at $0.54 and was a key resistance level in June and July.

Below the low, the next strong support level is at $0.4. Since July, $0.42-$0.44 has also been established as a support area. However, it was tested for the third time in as many months. The level is likely to weaken in every test and could break soon if ADA cannot break the bearish constraint.

It can be a difficult task. The Relative Strength Index (RSI) was below the neutral level 50 to show bearish momentum. The Accumulation/Distribution (A/D) indicator has also been moving sideways for nearly two months now.

This showed that buying and selling volume has been generally balanced since mid-August. However, this was not a bullish sign for the ADA, as accumulation at the lowest levels was not seen. The Aroon indicator also indicated a downtrend.

Social volume remained stable despite September downtrend

Cardano nears three-month low as buying pressure evaporates

Source: feeling

Development activity measured based on the project’s public GitHub repository showed ups and downs somewhat unrelated to price. However, the point is not the correlation, but rather that the $14.7 billion market price project has continued to evolve.

As of mid-September, the rejection of $0.58 led to a downward trend in the time frame. However, social size over the same time period was very good for the ADA compared to recent months. Perhaps investors are posting on social media expecting a long-term bottom to have formed after Vasell’s hard fork?

Although the ADA has had a fairly consistent amount of mentions on social media over the past two weeks, there has been no sign of an accumulation phase from a technical standpoint. A drop below $0.4 could take the crypto asset down to $0.33.

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