Cardano is at risk of breaking key support despite recent gains.
The RSI shows ADA nearing oversold conditions hinting at a possible reversal.
MACD signals bearish momentum with fading strength but a reversal is possible.
Cardano (ADA) currently has a value of $0.3419 and has seen a 2.06% increase in the past 24 hours. The token has a market capitalization of approximately $12.8 billion, which places it as the 10th largest crypto currency by market cap. Despite the overall market increase of the coin, the trading volume in the past 24 hours has seen a 9.69% decrease, which is valued at $310.85 million. This decrease in trading volume could indicate a potential shift in investor sentiment.
Cardano's Daily Recovery Faces Weekly Bearish Pressure Amid Volatility
The daily charts showcase how the market positions itself differently in terms of movement and trajectory. The market started with a dip, which is basically the main resistance, valuing at $0.3303 before stabilizing around the $0.342 mark. Despite the rise in the daily charts, the weekly charts have a strong bearish move, which is evidenced by the 9.41% reduction in its price. This shows how volatile the market can be within the different time zones and how investor engagement is imminent.
Source : coinmarketcap
One of the key levels to watch is the support at $0.271, which is the lower boundary of the descending triangle. This level has held strong on multiple occasions, preventing ADA from sliding further into the bearish territory. However, a break below this support could signal a deeper correction, possibly towards the next psychological support at $0.200.
Source: tradingview
Cardano Faces Bearish Growth with RSI Nearing Oversold, MACD Signals
The Relative Strength Index (RSI) lately stands at 39.77, indicating that ADA is nearing oversold conditions. This suggests that while the selling pressure is still In demand, the market could be approaching a likely reversal or at least a temporary relief rally. However, the RSI's closeness to the oversold limit also implies that there is room for further contradictions before a vital bounce can occur.
The Moving Average Convergence Divergence (MACD) indicates a bearish crossover, with the MACD line crossing below the signal line. This is a clear sign of negative momentum, which emphasizes the bearish outlook in the short term. The histogram is in red, which shows the notion of sellers remaining in control. The MACD indicator is better known as a lagging indicator which shows that its current results, which are bullish, can be changed at any time. Currently, the MACD histogram is beginning to fade, which shows a potential reversal.
The post Cardano Sees Daily Gains but Faces Bearish Pressure with Key Support at Risk appeared first on Crypto News Land.
