- If the price falls below $0.34, it can be a sign of a pattern breakout.
- Derivates data for ADA showed mixed sentiment.
Cardano’s [ADA] It has continued its bearish trend. Recently, it fell below the 50-day and 20-day moving averages to confirm a bullish bias.
ADA struggled to hold its ground above critical support levels after its recent drop. As of press time, it traded around $0.3439. This is a 2.5% drop in 24 hours.
Cardano is on the rebound?
ADA’s recent rebound from the $0.30 region support has created a classic widening wedge pattern in the daily chart.
Altcoin tried to move above the 50-day EMA and the 20-day EMA, but was rejected by the $0.40 level.
The rejection of the EMAs led to a depreciation of nearly 14% over the past two-week period.
The ADA trend is now pointing to the $0.34 threshold as a critical one.
ADA could be confirming a breakdown of the wedge pattern by maintaining a close under this level. This would increase the chances that the stock will continue to fall.
Cardano’s immediate target could be $0.31. Buyers may reenter the market to protect this psychological support zone.
The 20-day EMA has fallen below the 50 Day EMA. This indicates a greater bearishness in the markets.
This crossover might further push ADA towards retesting the $0.31 resistance level, before a bullish rally.
Price action showed lower lows while Relative Strength Index formed lows that were relatively flatter.
This divergence may indicate that there is less selling pressure, which could signal a potential turn around in the next session.
If the RSI rises above 50 and the rebound is at $0.3, this could indicate a good buying opportunity for those traders who are looking to take advantage of short-term gains.
Derivatives data reveals…
Coinglass
The data on derivatives provided a mixed view for ADA. The long/short 24-hour ratio was 0.941, indicating an overall balanced feeling.
But the Binance Long/Short Rate was notably in favor for longs at 3,5893, and OKX, respectively, with a ratio of 3.05.
Click Here to Read Cardano’s [ADA] Price Prediction 2024–2025
Trading volume dropped by 34.43 percent despite this optimism. This could indicate a lack of confidence among Cardano participants and reduced activity on the market.
Liquidation data showed that the liquidation of long positions was more prevalent, while short liquidations were minimal, indicating that aggressive shorting may not be driving this current downtrend, but rather profit-taking.
Disclaimer: All information provided is the opinion and solely of the author. The writer does not provide any financial or investment advice.
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Source: ambcrypto.com
