ADA price fell further on Tuesday, reflecting the wider crypto market performance. Cardano was down by 4.6 percent at the time of writing, trading at $0.409 and exceeding the losses incurred on Monday. The crypto ecosystem experienced an upbeat rally last week, with the global IT outage providing fodder for crypto bulls.
However, that momentum seems to have fizzled over the weekend, and the absence of market fundamentals this week is exerting pressure on the digital assets. In particular, the return to levels below $0.450 could trigger a bearish sentiment around ADA. That said, Cardano price could get fresh volatility as the ecosystem prepares for the long-awaited Chang Hard Fork upgrade.
The momentum indicators on ADA price signal that the market currently favours the bears. The RSI is currently at 47, while the MACD indicator is about to cross below the signal line. The $0.450 mark has been an elusive level, and ADA only touched that mark a week ago after more than six weeks below it. Furthermore, it didn’t find stability there, as shown on the daily price chart below. Therefore, that mark will likely serve as the resistance level this week.
Meanwhile, a red candlestick just crossed below the lower band on the Bollinger Bands indicator. This supports the view that the market is bearish-leaning and calls for further downside. A return above the signal line could signal a possible return to the upside trajectory.
ADAUSD will likely head downwards if resistance persists at the $0.410 pivot mark. That could see the first support established at $0.405, but extended control by the sellers could breach that mark and build the momentum to move the price lower and test $0.400. Alternatively, if the price moves above $0.410, it will favour the buyers to take control, and could provide the momentum to move to the first resistance at $0.416. Extended control by the buyers will break that barrier and potentially send ADA price to $0.420.
This post was last modified on Jul 23, 2024, 19:20 BST 19:20