For more than a week, the crypto space has been taking a dig. The tremendous fall of Bitcoin may be the cause of weekly bearish modes.
BTC has been trading below the $10,000 level lately. The dip has affected many altcoins including Cardano. ADA has recorded a bearish outlook over the past one week on a 4hr time frame.
The price failed to break above the major resistance level near $0.052694. Subsequently, a struggle to break below $0.048446 was seen. This was successful later on. On 28 August as at 16:00 UTC, a sharp drop later followed where it rallied at a low of $0.043756 that touched the lower descending channel.
On 29 August as at 08:00UTC the ADA/USD pair began to show recovery that reflected stability below $0.4661. The pair’s price, therefore, closed at $0.045067. Moreover, almost all the technical indicators suggested a bearish momentum.
This is because the long-term SMA is currently hovering above the short-term SMA. Besides, the formation of active descending channels signaled a downside momentum. However, the trend may be reversed from a downtrend to an uptrend by a break above the upper channel or $0.047000. Particularly since the RSI indicator has moved from the oversold region to trade at level 40.
On the other hand, is we look at the hourly chart, ADA/USD pair has been moving in a sideways trend. The indecisive movement of the price action reflected this. The price hovered between the critical resistance level at $0.045721 and support level $0.044370. The price action had later begun the session trading at $0.045423. ADA price later fluctuated upwards from $0.045423 to $0.045677. This was followed by a downside move to $0.44388 before gaining momentum to the current price of $0.45044. That approximate to a 1.16% increase over the intraday.
Notably, ADA/USD pair has been unpredictable with a great upward and downward volume. In addition, the small gain has brought its circulating supply to 25,927,070,538 ADA coins, with a market cap of over $1.17 billion over the last 24 hours.
Furthermore, most indicators suggest an upward price rally. Therefore a positive outlook is anticipated. The RSI indicator is currently above 50 levels. The moving averages are now acting as the price support, which gives a bullish sign in the near term. If the bulls make strong efforts, work on improving the price momentum, and break the $0.045721 level, then there is a possibility of better digits being seen.