Cardano Price Analysis 11/02: Bears Hijack ADA Market After Bulls Fail to Break Resistance
After bulls failed to break above $0.3654 in the Cardano (ADA) market, negative momentum predominated for the past 24 hours. Due to the bears’ dominance, the ADA price dropped to a low of $0.3563 throughout the trading day before the market regained support and began to recover slightly. Unfortunately, the bulls could not ride out the brief upswing, and the bears immediately retook market control as the price again fell around $0.3563. At the time of publication, however, ADA bears had caused a price drop of 0.93% to $0.3606.
The market capitalization fell to $12,489,612,152, and the 24-hour trading volume fell to $292,424,630, respectively, during the recession. The bears gained sway as the market fell further, dampening any positive sentiment.
ADA/USD 24-hour price chart (source: CoinMarketCap)
On the 4-hour price chart, the Williams Alligator points south with a blue line above the red line and a red line above the green line, with values of 0.374, 0.368, and 0.363, respectively, indicating a downward trend in the market. This trend means the Williams Alligator trend reflects an adverse need, suggesting investors should proceed with care. In addition, the trend favors selling, evidenced by the price action trend below the Alligator’s mouth, suggesting more price declines soon.
The bearishness, reflected in the William Percent Range value of -86.11, suggests that buyers are there but lack the power to force the price upward. Bearish market conditions are further corroborated by the Moving Average Convergence Divergence (MACD) indicator, which displays a negative trend line passing over the signal line with no clear evidence of reversal.
Given that the MACD line is trending at -0.09 below its signal line, it is safe to assume that unfavorable market conditions will persist for the foreseeable future.
Since the MACD line typically displays a negative trend when it is below its signal line, and the reading of -0.09 shows a high degree of bearishness, this MACD movement alludes to a further drop in the ADA market.
ADA/USD 4-hour price chart (source: TradingView)
With readings of 0.379, 0.378, and 0.371 on the 24-hour ADA price chart, the red line goes above the green line, and the green bar moves above the blue line. It indicated to investors that now may be an excellent time to acquire Ada currency (ADA) due to the possibility of a future price increase. The green line, which reflects the strength of the bulls compared to the bears, has surpassed both the red line, which shows purchasing pressure and momentum and the blue line, which measures an average of recent prices. The convergence of the green and red lines above the blue line produces a ‘golden cross,’ a well-known indication traders use to forecast an upward price trend.
Another warning that the price of ADA is about to climb is the William Percentage Range reading of -90, which indicates an oversold market. This phenomenon is particularly intriguing since it allows traders to get in at a lower price, creating a potentially lucrative arbitrage position.
However, though the MACD line is positive with a value of 0.008, it has lately crossed below its signal line, suggesting that the negative momentum in ADA is strong. Furthermore, the MACD histogram’s negative value further supports the bearish momentum, which supports the concept that the bearishness will continue until a positive crossing occurs.
ADA/USD 24-hour price chart (source: TradingView)
In order to reclaim the ADA market, bulls must apply pressure and convert resistance into support.
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