Cardano Price Analysis: Bears Take Back Control, Restrict ADA Price Below $0.4!
Cardano is trading within a bearish zone as the price is undergoing a massive downswing after facing rejection from the monthly highs of around $0.462. The bears have successfully dipped the price below $0.4 and held a strong grip at $0.39, due to which massive selling pressure has mounted over the crypto.
Will the ADA price trigger a rebound or maintain a steep descending trend and test the lower targets?
The ADA price is trading below the important bearish zone at $0.4 and also below the 55-day simple moving average. In the short term, key support levels have been formed, with resistance around $0.385. Hence, the price is believed to maintain a steep descending trend if it continues to trade below the crucial $0.4 resistance level. On the contrary, the price may begin a fresh bullish move if it clears the $0.39 level.
The ADA price underwent a fresh decline in the past few days, which has compelled the price to test the upper resistance of the decisive symmetric triangle. The price, before reaching the apex, broke out of consolidation, and hence a bearish move was much anticipated. Now that the price is closer to re-entering the consolidation, it may trade for a few more days within narrow regions and attract the bulls to trigger a fresh bullish wave.
Also Read : Has the Crypto Market Hit Rock Bottom? Here’s What Next For Bitcoin and Major Altcoins
Presently, the RSI & ADX are bearish, and hence the possibility of the price rejecting the $0.37 level also appears pretty high. Moreover, the selling volume has mounted, which may not allow bulls to cover it up at the moment. Conversely, a flip above $0.4 may invalidate the bearish thesis and spark a fine upswing back toward the major resistance at $0.42, which may further keep up the bullish momentum.
