- ADA declines with 7.43% in & days With a strong bearish trend.
- The key indicators point to a continuation of the bearish trend as ADA attempts a new support level.
Cardano [ADA] It has experienced a drop in price over the last thirty days. It has seen a decline in price of 7.43% over the past week. ADA’s price was $0.4074 during the time of publication, and its 24-hour volume had increased by 15.32%.
According to Coinmarketcap, ADA’s market cap is $1.2 billion of $14.5b, a 1.13% Increase in 24 hours.
AMBcrypto predicted that ADA was on the verge of a breakdown. A move below $0.406 creates a new support level.
This bearish trend will continue until there is a structural change or if another solid support is found. The current trade indicates that the market is in a bearish trend, and will continue to be so until around $0.356 a downward support emerges.
The price will rise to $0.487 if a reverse occurs at $0.403. Although the current market trends are bearish, they seem to persist.
ADA actually has a negative CMf (-0.15) at time of publication, indicating an increased level of selling pressure. When the CMF is negative, there’s a good chance that this trend will continue.
As there are more sales than purchases, the prices will decrease.
ADA sentiments
Coinglass indicates a decreased ADA weighted funding. Lower funding rates generally imply that longs are paid by shorts, indicating a trend or sentiment of bearishness.
Futures trading below the current spot price puts downward pressure to prices.
Santiment data also shows a reduction in trading. A decrease in open interest means fewer transactions on future markets and thin orderbooks.
This change in sentiment results in increased trading volume volatility. This implies a downward trend, as forced liquidation is the result.
How much can ADA drop?
ADA has a bearish bias according to various indicators. A breakdown below local support of $0.403 is likely to continue the current bearish trend.
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A new structure or a higher level will cause a market reversal.
A potential reverse can, in this case, push the market up to $0.489 and create a new level of resistance at $0.505. As long as the market structure does not change, it will continue to be bearish.
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Source: ambcrypto.com