Cardano [ADA] The market is weakening, but investors can still profit at this level

  • ADA has been in a strong bear market structure.
  • The coin may drop to $0.2963 as trading volume and active addresses decline.
  • A candle closing above $0.3026 will invalidate the above expectations.

Cardano [ADA] Prices were in a prolonged slump, threatening to fall. At the time of writing, it is trading at $0.2992 but it still looks slippery. As suggested by technical indicators and on-chain metrics, a drop to $0.2963 is possible.

If bearish momentum prevails, ADA investors can take advantage of the short selling opportunity if the price drops to $0.2963.

ADA Forms a Bullish Hammer: Will the Bulls Come to the Rescue and Drive the Price Up?

Source: ADAUSDT on TradingView

At the time of writing, ADA has registered a bullish hammer (second-to-last green candlestick with an extended tail wave). It showed that the bulls resisted selling pressure even though they were overwhelmed at the time of publication.

Will the speculators overcome the rally and push it higher, or will the selling pressure increase? Technical indicators suggested the latter at the time of publication. The RSI moved to a lower range bordering on the oversold zone. This showed that selling pressure had increased and the bulls could undermine ADA.

In addition, On Balance Volume has recently recorded lower lows, which may also undermine the buying pressure. Therefore, ADA is likely to drop to $0.2963.

However, a candle closing above $0.3016 would invalidate the aforementioned bearish predictions, especially if Bitcoin is bullish. Such an upward move could cause ADA to test several resistances, with the immediate level at $0.3026.

Active titles decline while sentiment remains negative

Source: feeling

Cardano has seen sentiment drop into negative territory, indicating a bearish outlook. In addition, the trading volume decreased slightly.

At the time of publication, active addresses have shrunk in the last hour, to the time of publication. It is noteworthy that the active addresses were irregular, with the up and down markers located close to each other. It has shown a volatile number of accounts trading ADA, making it difficult to accurately determine potential market direction.

BTC’s performance may provide the necessary guidance. Thus, the bearish BTC could expose the ADA to more selling pressure. However, a bullish BTC will pull the ADA and invalidate the bearish forecast above.

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