Yesterday’s market crash pushed ADA below $1.5. As of writing these lines, ADA faces a crucial support level at $1.3. In case that this level breaks down, ADA is likely to retest $1.
Key Support levels: $1.3, $1
Key Resistance level: $1.5, $1.7
Cardano’s native token has seen a downtrend correction since early September, following hitting the current all-time high at $3.09, according to CoinGecko.
Unfortunately for ADA’s holders, the most recent market crash drove it below the key support level at $1.5 down to $1.3. Price is currently struggling to maintain the critical support, and ADA may continue to fall to $1 if the current level isn’t able to hold.
ADA has been in a steep and aggressive bearish trend that started months before this market crash. Therefore, the bears are in control of the market. In order to start seeing a bullish reversal, the price needs to reclaim the $1.5 level, which has turned into resistance following the weekend crash.
Technical Indicators
Trading Volume: Increasing volume as price declines is a bearish sign. Best to stay away from ADA until there are signs of a possible reversal, followed by a massive amount of volume.
RSI: The daily RSI has been hovering just above 30 points or above the oversold territory since the correction started in September. This puts ADA in a clear bearish trend. However, this latest drop in price did not make a lower low on RSI, indicating that bears may become exhausted. In addition, the oversold area is nearby.
MACD: The MACD on the daily timeframe is bearish with expanding moving averages and a negative histogram. This has to reverse quickly; otherwise, the $1.3 support level may be under significant pressure.
Bias
The current Cardano (ADA) bias is bearish. Since launching smart contracts on Cardano, the trend has been bearish for over three months, and this latest market crash even made it more difficult for ADA to find a way out of this downtrend.
Short-Term Prediction for ADA Price
If ADA cannot stop the downtrend at $1.3, the price will most likely drop to retest the next significant support around $1. The bears dominate the market as of now.
Keeping in mind the current market conditions, it’s hard to see how ADA can reverse course at this time. In the best-case scenario, ADA can consolidate here and attempt a breakout later in December.
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to $1750.
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.
Credit: Source link
