Cardano Price Consolidates, When Should You Short Again?

The Cardano price had increased over the weekend, but the coin showed lateral price movement at press time. Over the last 24 hours, ADA has dipped about 0.2%. The ADA has gained 4% in the last week, indicating a positive trend. According to the technical outlook, the Cardano price has not yet reversed its price action.

The downtrend continues despite the coin securing minor gains over the last few days. The buying strength remained low, which depicted lower accumulation as well. Cardano bounced back from oversold territory, but the selling momentum was still strong.

With the Bitcoin price falling and fluctuating between $16,900 and $16,600, altcoins have also seen choppy and undecided price movements. Following major market movers, ADA traded between $0.26 and $0.27, with the altcoin falling below the $0.25 price mark in the last 24 hours.

The market has presented signs where buyers can make an entry to make some gains over the shorter trading timeframe. The trading volume of Cardano was low, indicating a lack of buyers. ADA is trading 91% below its all-time high secured in the last year.

Cardano Price Analysis: One-Day Chart

Cardano was priced at $0.25 on the one-day chart | Source: ADAUSD on TradingView

ADA was trading at $0.25 at the time of writing. Because of the recent depreciation, ADA has lost its $0.26 support line. If buyers push harder, Cardano can be expected to trade above the $0.26 level again. The major mark of resistance for ADA stood at $0.28.

As per the technical indicators, Cardano price might lose the $0.25 level before it starts to make upward strides again.

That would mark an entry point for buyers and an appropriate shorting opportunity for traders. If the Cardano price fell below the $0.25 mark, the first support stood at $0.24 and then at $0.22. The amount of Cardano traded in the last session declined, signifying bearish price action.

Technical Analysis

Cardano Price
Cardano registered slow demand on the one-day chart | Source: ADAUSD on TradingView

Despite Cardano recovering from the undervalued zone, it still hovered close to the selling dominance zone. The Relative Strength Index was below the 40-mark with a downtick, which could lead to another fall in price before the altcoin makes a comeback.

The Cardano price was below the 20-Simple Moving Average (SMA) line, which meant sellers continued to drive the price momentum in the market. Traders shorting will make gains over the next trading sessions as ADA prepares to topple past the 20-SMA line.

Cardano Price
Cardano depicted the buy signal on the one-day chart | Source: ADAUSD on TradingView

Bearish conditions prevailed for Cardano, as the other indicators also pointed in the same direction. The Directional Movement Index (DMI), which demonstrates the price direction and strength, was negative. The -DI line (orange) was above the -DI line (blue), indicating that sellers had more strength in the market.

The Average Directional Index (red) was at 40, depicting increased strength in the current price direction. This reiterated that the bears were strong, which would mean another fall for ADA, which could benefit sellers.

The Moving Average Convergence Divergence portrays the price momentum. The indicator just painted one small green signal bar, indicating that buyers could find an entry point now to log gains over the immediate trading session.

Featured Image From UnSplash, Charts From

Source link

Leave a Reply

GIPHY App Key not set. Please check settings

What do you think?

U.S. officials arrest and charge Mango attacker

Dogecoin Among Most Searched, Will It Keep Its Spot In 2023?