Cardano faces an uncertain path ahead
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#Cardano (ADA) clings to $0.35 support, but recovery signals remain weak
Cardano struggles to hold on to $0.35 support amid bearish momentum, while technical indicators show weakness.
The #ADA price could fall to USD 0.31 if the momentum remains intact, and could rise to USD 0.40-0.48 in the medium term. Cardano (ADA) is desperately clinging to the $0.35 support level in an attempt to send the altcoin further down the chart. Despite this, ADA is struggling to generate the momentum needed to reverse the downtrend.
This analysis looks at the challenges facing ADA and whether support can withstand increasing bearish pressure.
In the first few days of October, the Cardano price fell to $0.30. Having reached USD 0.40 a few days earlier, ADA, like many other cryptocurrencies, began to fall. This downtrend raised concerns about the possibility of a return to the $0.30 mark.
But so far, ADA has managed to stay above this mark, with bulls defending the $0.35 support level. Despite this resilience, the exponential moving average (EMA) shows that Cardano remains vulnerable to a bearish trend.
The EMA measures trend direction and uses specific crossovers to determine if prices are moving in an uptrend or downtrend.
If the long EMA crosses the short EMA, the trend is bearish. On the other hand, if the short EMA is above the long EMA, the trend is bullish. The 20 EMA (blue) and 50 EMA (yellow) indicators are almost converging, indicating a turning point for Cardano prices. However, as prices are below both indicators, the potential for a bearish trend is increasing.
This prediction is supported by the Average Directional Index (ADX), an important tool for measuring trend strength: an #ADX above 25 indicates a strong directional trend.
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