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- The Cardano market has recently shown some concerning indications. Bearish patterns on the price and indicators of ADA, along with a larger market sell-off, resulted in significant losses
- The candle had penetrated the defensive zone of $2.46 and appeared to continue losses, despite the fact that today’s session started at $2.51
- The Awesome Oscillator recorded its 14th consecutive red candle, indicating that purchasing demand has been steadily declining since late August
The Cardano market has recently shown some concerning indications. Bearish patterns on the price and indicators of ADA, along with a larger market sell-off, resulted in significant losses. The market was hit by waves of selling pressure, with ADA posting its worst daily percentage loss since June 21, and a single candlewick falling as low as $2.00. Various support levels are currently under pressure to reduce selling pressure, and if purchasers aren’t attentive, ADA’s value will tumble another 22%. ADA was trading at $2.39 with a market worth of $79.89 billion at the time of writing. After a rising wedge emerged on Cardano’s daily and 12-hour charts, the price plummeted as expected. After a collapse, a big red candle with an even larger candlewick appeared, dropping as low as $2.00 and approaching the 50-SMA (yellow).
The candle had penetrated the defensive zone of $2.46 and appeared to continue losses, despite the fact that today’s session started at $2.51. The current support level of around $2.26 would be critical to ADA’s success in a bullish comeback. In reality, the 4-hour period (not displayed) suggested that buying pressure has been gradually seeping in at the previously stated level. However, this does not rule out the possibility of ADA retesting $3 in the near future. Over the next 24 hours, there’s a potential for reactive purchasing, but sellers are likely to hold prices in control. As ADA stabilizes, the $2.20-$2.56 range may become more important in the future. A closure below $1.88, on the other hand, would shatter ADA’s optimistic long-term forecast. The daily RSI dipped below its equilibrium after breaking south from a bearish descending triangle.
The mid-line has frequently served as support/resistance, and it’s too early to predict a prolonged fall. The Awesome Oscillator recorded its 14th consecutive red candle, indicating that purchasing demand has been steadily declining since late August. This resulted in the MACD’s first bearish crossing since July 11th. Given that both the Awesome Oscillator and the MACD were trading at exuberant levels, the present stabilization can be viewed as beneficial in the long run. As ADA attempts to reduce losses over $2, the price may settle between $2.20 and $2.58 in the next few days. Reactionary purchasing may push the price higher, but this rise is likely to be fleeting as ADA’s indications reset before the next movement. However, traders should be wary of closing below $1.88, as this would put the market in danger of another sharp drop.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
