Cardano (ADA) Continues to Sink, What’s Next for the Coin?

At press time, Cardano (ADA) recently dipped below the $0.50 support line. Just like Bitcoin, major altcoins are either consolidating or falling on their charts. On longer time frames, Cardano (ADA) continues to show a bearish thesis.

On the shorter timeframes, ADA hinted at a possible price reversal on the charts. In the past 24 hours, ADA has increased by 1.7%, and in the last week, the coin has brought double-digit losses. At the time of writing, the bulls have faded as purchasing power continues to be sluggish.

Currently, $0.50 has been the immediate resistance level for the coin. Immediate support for the coin lies between $0.44 and $0.40. If the broader market recovers with continued purchasing power, then Cardano (ADA) price could see a reversal.

Cardano Price Analysis: One Day Chart

Cardano at $0.47 on the four-hour chart | Source: ADAUSD on TradingView

At the time of writing, ADA is trading at $0.47. Since April, the coin has formed a descending channel, reflecting the bearishness on the chart. Recently, ADA broke out of a descending channel when it fell below the $0.50 price barrier.

Currently, $0.50 is the coin’s recent price cap. If Cardano can break the $0.50 price mark, the coin could trade near $0.58. A break below the $0.47 price level would lead to ADA hovering between $0.44 and $0.40.

A break below this level could send ADA to its lowest price level in over a year. The coin’s trading volume has dropped significantly, showing that bears are still in power.

technical analysis

Cardano
Cardano records rising purchasing power on the four-hour chart | Source: ADAUSD on TradingView

Cardano is showing signs of a price reversal on the four-hour chart. The price of the altcoin is trying to rise above the 20-SMA line. For now, however, sellers are still responsible for price momentum.

The RSI is up, which means prices on the chart are bullish. Buyers are returning to the market and increased demand could push the asset above the 20-SMA.

Increased demand will see ADA trade near $0.58 and then the coin might try to hit the $0.70 price level.

Related reading | Ethereum profitability falls to 2-year low as price corrects below $2,000

Cardano
Cardano flashes buy signal on four-hour chart | Source: ADAUSD on TradingView

ADA’s Awesome Oscillator shows a green histogram, which means there has been a change in price momentum. AO also depicts a buy signal, as the green histogram is the same signal.

The Moving Average Convergence Divergence has experienced a bullish crossover and flashing green histogram.

The green histogram means that the coin may try to rise on its chart in the upcoming trading session.

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