Cardano’s Critical Crossroad: Bearish Trend or Potential Bullish Revival?


The price of Cardano (ADA), a leading cryptocurrency, which has plummeted by a staggering 46% from its yearly high, is at a pivotal fork in the road. This digital coin is teetering at a critical price threshold that could dictate an optimistic upswing or a continuation of its recent downtrend.

Essential to understanding ADA’s present course, the daily ADA/USD chart reveals a voyage confined within a downward channel. This pathway has clearly captured the bearish momentum ADA has grappled with since the dawn of March this year. ADA’s price reached an apex near $0.475 on Monday, only to be met with considerable resistance at the channel’s top border. The stubborn 20-day Exponential Moving Average (EMA), currently stationed at $0.47, also notably mounted a formidable counteraction.

Follow us on Google News! ✔️

At the moment, the ADA’s valuation trades around $0.44. This level represents another wall of impedance, echoing past price rejection points and reinforcing its prominence. In the near future, overcoming this wall becomes key, given its historical precedence.

Above the present price level, the densities of the 20-day EMA ($0.47), 50-day EMA ($0.54), and 100-day EMA ($0.51) converge to denote a massive zone of resistance, backed further by the 200-day EMA at $0.52. This clustered formation is indicative of profound bearish momentum.

The daily chart’s Relative Strength Index (RSI), currently holding at 38, isn’t meandering into the oversold scenario of 30 and below yet, but the suggestion of sustained bearish movement is rife. Still, a decline possibility will remain imminent until a reversal takes place.

For ADA to recoup from its losses and chart a bullish trajectory, a consistent break beyond the $0.47 mark (20-day EMA) is vital. This rupture would require heightened trading volume to authenticate a breakout from the descending channel and induce a market sentiment shift. Consequently, the EMA cluster evolves into the nucleus of opposition, and ADA must surpass this obstacle to kindle bullish momentum and trigger a potential surge above its annual peak of $0.81 achieved in March. Failing this, ADA’s price could succumb to the channel’s median and plunge below $0.40.

Meanwhile, on the weekly chart, a bleaker scene is unfolding. The dominant bearish climate encapsulating ADA since it peaked at $3.17 in late 2021 is glaringly apparent. The continuous string of lower highs and lower lows paints a classic image of a downtrend.

At present, ADA’s price motion is muffled beneath the long-standing moving averages, specifically the 20-week EMA at $0.52, 50-week EMA at $0.48, 100-week EMA at $0.51, and 200-week EMA at $0.52. The downward trajectory of these averages underscores the unfaltering sell-off pressure of recent weeks.

The Fibonacci retracement levels, charted from the peak worth of $3.17 to the nadir of $0.22, shed additional light on ADA’s potential path. Currently, ADA hovers around $0.44, staying resiliently above the significant psychological and technical support level of $0.40.

Looking ahead, significant obstacles include the 0.236 level at $0.918, a threshold that ADA has failed to breach consistently. A successful rise above this benchmark could clear the way towards elevated Fibonacci levels at $1.348 (0.382) and $1.697 (0.5), contingent on a considerable reversal in momentum and a renewed wave of buying interest.

To escape its bearish shackles, ADA’s focus must remain steadfast on the daily resistance level which lies near $0.47 (descending channel breakout). Surpassing this hurdle is integral for signaling a bullish reversal. Until this level is convincingly breached with abundant trading volume, the forecast remains skewed towards further bearish progression.

Previous articleMinnesota Passes Taylor Swift Bill for Transparent Online Ticket Sales
Next articleCrypto Traders Unlock Secrets of Memecoin Goldmine on Unchained Podcast
Melinda Cochrane is a poet, teacher and fiction author. She is also the editor and publisher of The Inspired Heart, a collection of international writers. Melinda also runs a publishing company, Melinda Cochrane International books for aspiring writers, based out Montreal, Quebec. Her publication credits include: The art of poetic inquiry, (Backalong Books), a novella, Desperate Freedom, (Brian Wrixon Books Canada), and 2 collections of poetry; The Man Who Stole Father’s Boat, (Backalong Books), and She’s an Island Poet, Desperate Freedom was on the bestseller's list for one week, and The Man Who Stole Father’s Boat is one of hope and encouragement for all those living in the social welfare system. She’s been published in online magazines such as, (regular writer for) ‘Life as a Human’, and Shannon Grissom’s magazine.