- Cardano is in a bearish short-term trend after dropping below the $0.4 mark.
- In the near future, despite increasing sell pressures, it’s possible that prices will rise to $0.5.
Cardano [ADA] fell below a key support zone as highlighted In a recent study. They revealed the mood and the fact that bears are likely to be dominant. What is the extent of their dominance?
AMBCrypto examined the liquidity pool and price movement to determine where ADA will likely go next. We’ve compiled a list of what we learned and how traders can plan next steps.
The daily breaker blocks fail to stop the sellers
Source: ADA/USDT at TradingView
The $0.4 region was identified by a bullish breaker as a demand area for ADA. It held as support briefly in the last few trading days, but gave way by press time.
The closing of a daily session below $0.402 is a signal for reversal.
The breakout occurred after a break-out past a falling wedge long-term formation. Cardano’s price had been expected to rise strongly, but DMI revealed a bearish trend with the ADX, -DI, and DMI below 20.
The OBV failed to break through a resistance at a nearby level, while the CMF was well below the -0.05 mark to indicate hefty capital flows out of the market. The RSI is below neutral 50%, which indicates a rise in bearish momentum.
Arguments for the reversal of the trend in bearish
Source: Hyblock
Liquidation heatmap: Despite the lack of hope in technical indicators, price movement and other factors, there was some optimism. Magnetic levels of liquidation at $0.46 to $0.48 could draw prices towards them.
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The $0.39 to $0.4 cluster is now a thing of the past, as liquidity drives prices up.
In order to do this, however, the buyers have to fight a lackluster social media buzz and an eroding demand.
Disclaimer: This information is not intended to be a source of financial advice, investment or trading recommendations, and represents the sole opinion of its author.
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Source: ambcrypto.com
