Cardano sees strong support at $0.31 – should the bears break that level too

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

  • Despite the rise to $0.375, the structure remained bearish
  • $0.26 was the next important support level to watch for

Cardano was in the grip of a dangerous downtrend. This is how it has been since August. Even before the failure of FTX, Cardano fell into his trading range from May to early October.

Read Cardanos [ADA] Price forecast 2023-2023

Therefore, renewed selling pressure did not destroy an otherwise positive market, but instead accelerated the decline of the ADA. Further declines can be expected in the coming weeks. The $0.37-$0.26 area was significant in January 2021 and could prove crucial to bullish hopes once again.

The market structure on the daily chart is still bearish, with $0.316 next on the bearish crosses

Source: ADA / USDT on TradingView

In early November, ADA attempted to hold above the $0.385 support level. On November 5, it attempted to break the $0.425 resistance but faced a strong rejection. Additionally, the price dropped to a low of $0.31 on November 9. Thus, it has turned the market structure into a bearish one. A return above $0.376 would be necessary to reverse the bias, although a true trend reversal could take months to materialize.

This came on the heels of all the market panic surrounding the FTX saga. Since Bitcoin is also weak on higher time frame charts, long-term ADA investors may want to wait for the dust to settle.

Technical indicators have not shown much hope to the bulls. The Relative Strength Index (RSI) was at 39.89, and has been below the neutral 50 level for an extended period of time since mid-August. This indicates that a downtrend on the daily charts was in progress, which the price action has agreed upon.

Unbalanced Volume (OBV) is back to the support level from October once again. It has seen a significant pullback in the last week, indicative of real selling pressure in the Cardano markets. Meanwhile, the Bollinger Bandwidth indicator has risen in recent weeks. This indicator showed that volatility behind the ADA has been high over the past month.

MVRV (30 days) is back in the red as holders lose again

Cardano sees big fluctuations but the trend has continued to the south

Source: feeling

Despite the losses incurred by ADA over the past week, the fundraising rate for the asset continues to be in positive territory on Binance. The MVRV’s market cap fell below the zero line to show 30-day holders had a net loss. The tops of this metric have seen a pickup in selling pressure in recent months and it could be something to watch.

The measure of consumer age experienced a massive peak on November 7. This spike indicates that a large amount of previously inactive ADA tokens were moved between addresses. Since this was followed by a big sell-off, it is possible that these tokens went to exchange addresses to be sold.

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