Cardano In Strong Demand Zone, Breaking Through Key Level Crucial
April 20 2023 - 2:30PM
NEWSBTC
The Cardano price has yet to turn completely bearish, but the bulls
have abandoned the current price level. This has caused ADA to lose
almost 3% in the last 24 hours. Despite this decline, the altcoin
has retained some gains on the weekly chart, although most of these
gains have been wiped out due to the recent price drop. The
technical outlook suggests that ADA may soon fall into the hands of
sellers as a drop has followed a slight decline in demand in
accumulation. Related Reading: Polkadot Bears Are Back, Can DOT
Revisit $7 Soon? While Cardano is still in a demand zone, breaching
its immediate resistance mark could allow the bulls to regain
control in subsequent trading sessions. With Bitcoin’s price
falling below the $30,000 mark, other altcoins have also slipped
below their immediate support level. However, if ADA can surpass
the $0.42 level, it has the potential to rally significantly. A
decline in ADA’s market capitalization indicates short selling on
the one-day chart. Cardano Price Analysis: One-Day Chart At the
time of writing, ADA was trading at $0.41. Overhead resistance for
the altcoin stands at $0.42. A move above this level could
potentially push the price to $0.46. Breaching $0.46 might even
result in ADA revisiting $0.50. Cardano is currently within a
strong demand zone, from $0.30 to $0.42. However, a drop from the
current level could lead to a decline in price to $0.33. Falling
from $0.33 may cause ADA to fall further to $0.30. In the last
session, the amount of Cardano traded was red, indicating increased
selling pressure and volume. Technical Analysis The Relative
Strength Index (RSI) is a momentum indicator that measures the
magnitude of recent price changes to evaluate overbought or
oversold conditions in the market. The RSI formed a downtick in
this case and stood below the 60-mark. This meant that the buying
strength for Cardano was slowly fading out, indicating a shift in
the market sentiment toward selling pressure. At the time of
writing, as demand for Cardano started to fall. The cryptocurrency
began displaying sell signals. The Moving Average Convergence
Divergence (MACD) formed red histograms. This indicated that sell
signals were being generated on the chart. In addition, Bollinger
Bands, which measures an asset’s price volatility and fluctuation,
began to widen, suggesting that Cardano’s price may encounter
increased volatility. Related Reading: Shiba Inu (SHIB) Price
Momentum Screeches To A Halt: What’s The Outlook? The upper band of
the Bollinger Bands indicator will now act as crucial resistance
for Cardano. Breaking above it will require a significant amount of
buying strength. As with any cryptocurrency, the broader market’s
strength will be crucial in determining how Cardano performs over
the subsequent trading sessions. Featured Image From UnSplash,
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