Cardano (ADA) Bears Push Back, Bulls Brace for Reversal
Cardano (ADA) bulls capitulated after failing to breach resistance at the intraday high of $0.3425 after beginning the day with a commanding lead. Bears pushed the ADA price to an intraday low of $0.3317 as the bullish momentum faded.
While this shift is a negative development for ADA bulls, the general trend remains up, as the coin’s value is now more excellent than it was the day before.
At the time of this writing, the negative trend had won out, and one ADA token was worth $0.3399, a decrease of 0.49%. Both market capitalization and 24-hour trading activity have suffered hits due to the current economic downturn. The market cap is now $11,788,904,733, down 0.41 %, while the 24-hour volume is at $185,355,878, down 19.55 %.
ADA/USD 24-hour price chart (source: CoinMarketCap)
Indicating a strengthening negative hold on the market, the ADA Average Directional Index (ADX) on the 1-hour price chart now stands at 17.97 and heads south. In further decline, traders may think about opening short positions. Instead, they may postpone substantial movements until the ADX provides a clearer signal.
ADX values exceeding 25 indicate a robust trend, while values below 20 reflect a weak trend. Traders may wait until the ADX exceeds these levels before initiating or abandoning a trade.
A negative Chaikin Money Flow (CMF) rating of -0.12 indicates that selling pressure is increasing. It may be a warning indicator to wait until there is a change in trend before establishing a long position since it suggests selling pressure.
While a long-term upward trend seems unlikely, there is still a chance for short-term profits by starting a trade and closing it before a possible trend reversal.
ADA/USD 1-hour price chart (source: TradingView)
In the ADA price chart, the Bollinger bands move linearly, with the upper band at 0.344 and the lower band touching 0.333. This action shows that the bearish grip on ADA is tightening as price movement inside the bars becomes increasingly confined. Although the band contraction often precedes a price breakout, this might soon imply a reasonable price consolidation period.
Price action moves at the same level as the signal line while forming a red candlestick, indicating that selling pressure is building. This trend might warn traders to brace themselves for a price decline or trend reversal.
The bear hand may begin to lose strength as the MACD line has lately crossed above its signal line and is heading towards the positive zone with a value of -0.000, suggesting a likely movement towards bullish emotion. The histogram is trending upward, adding to this optimistic view, and indicating more significant momentum and upward potential. Traders may choose to take bullish strategies in anticipation of a trend reversal.
With a value of 85.77, the stochastic RSI is trending below its signal line and in the overbought range, suggesting that ADA’s current trend may be losing speed. This rise boosts traders’ confidence as they expect a possible pullback or correction in the price of ADA.
ADA/USD 1-hour price chart (source: TradingView)
As ADA faces selling pressure and a tightening bearish grip, traders may wait for clearer signals before making moves, but short-term profits remain possible.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
