- Cardano’s market structure is strongly negative
- Technical indicators predicted a steep price decline could be coming soon
Cardano [ADA] Form a bullish chart pattern The token may reach $1 within the next couple of weeks. As sentiment improved, so did its social metrics. Price action, however, was disappointing.
Price was well below January 2024’s lows and technical indicators suggested the bulls had weakened. Fibonacci predicted how deep to go. next ADA Drop could be.
What investors should know about the market.
What are the chances of 30% drop?
Source: ADA/USDT at TradingView
ADA traded mainly within a purple range from $0.447 up to $0.678. Over the past few months, prices were consistently at or near the lowest levels of the trading range.
In early April the $0.567 mid-range level was also breached, leaving a large imbalance (white). Mid-April saw a retest of this area as resistance.
In the intervening period, there has not been enough buying power for the bulls to return the level of $0.5.
It was evident in the OBV, which had returned to a level of support from earlier in this year. It is likely that more losses will occur until both the OBV as well as buying volume trends upward.
The RSI was also lower than neutral 50, indicating a downward movement.
Fibonacci levels plotted (pale yellow), based on a move from $0.81 to $0.3 in March, showed the 23,6% extension southward at $0.3. next Target bearish
A popular way to sell short was through the internet
Source: Coinalyze
The price of Cardano dropped by 2% on the 11th and 12th May but Open Interest increased by $3 Million. It was evident that there were short-sellers entering the market, and this reflected a negative sentiment.
Spot CVD continued to decline, indicating a lack in buying.
Click Here to Read Cardano’s [ADA] Price Prediction 2024-25
If the bulls don’t step up and stop the constant selling pressure, the 30% decline projected by Fibonacci could be a real possibility.
The team has not displayed any strength, and they are desperately trying to hold the lows of their long-term range.
Disclaimer: Information presented on this site is for informational purposes only. financialThe writer is not providing any investment advice, trading or other type of financial guidance.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: ambcrypto.com
