Yesterday’s market crash pushed ADA down below $1.5. ADA is currently at $1.3. ADA will likely retest $1 in case this level is broken.
Key Support levels: $1.3, $1
Key resistance level: $1.5, $1.7
Cardano’s native coin has been in a downward trend since September after hitting its all-time high of $3.09 according to CoinGecko.
The most recent market crash has brought ADA’s holders below the critical support level of $1.5 to $1. Price is struggling to maintain critical support. ADA could continue falling to $1 if it isn’t able.
ADA has been in a strong and aggressive bearish trend since months before the market crash. The bears have taken control of the market. To see a bullish reversal in the market, the price must regain the $1.5 level. This has become resistance since the weekend crash.
Chart by TradingView
Trade Volume: An indicator of a bearish trend is an increase in volume when prices fall. ADA should be avoided until you see signs of a possible reversal. Then, avoid ADA if there is a large volume.
RSI: Since September’s correction, the daily RSI has hovered just above 30 points or over the oversold territory. This clearly indicates that ADA is in a bearish trend. This latest price drop did not reach a lower low on RSI. It suggests that bears might be exhausted. The oversold zone is also nearby.
MACD: MACD is bearish on the daily timeframe with growing moving averages, and a negative histogram. This must be reversed quickly, as otherwise the $1.3 support level could be severely under pressure.
Chart by TradingView
Current Cardano (ADA), bias is bearish. The trend has been bearish since Cardano launched smart contracts. This latest market crash made it even more difficult for ADA find a way to break this downtrend.
Short-Term Prediction of ADA Price
If ADA fails to stop the downtrend at $1.3, then the price will drop to retest the nearest significant support of $1. As of now, the bears are dominant in the market.
ADA’s current market conditions make it difficult to imagine how they can reverse their course. ADA could consolidate here, and then attempt a breakout in December.
Marla Brooks – Financial Analysis
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