- ADA continued its long-term downward trend as it dropped below the 200 day EMA. However, near-term volatility may offer buyers some opportunities.
- Altcoin Funding Rates indicated a reduction in the selling pressure.
There was a general decline in the mood for Cardano [ADA] over the past day as the Crypto Fear & Greed Index entered the ‘Extreme Fear’ zone.
The daily chart finally showed a bullish reverse pattern, after witnessing an extended streak of red candlesticks. The bulls may have a chance to reverse the bearish trend, but will that be enough?
ADA was trading at $0.4 as of the writing date, an increase of around 2% in the last day.
Cardano can reverse the current bearish trend.
ADA was in a bearish long-term pattern, especially when it fell beneath its 200-day EMA.
The 200 EMA of ADA has become a significant resistance for the recovery of this coin.
ADA for instance recently saw a classic bullish pennant after rebounding above this level of resistance on its chart.
The coin is likely to be volatile in the short-term as the coin attempts to overcome its 50-day and 20-day EMA chains.
The support level of $0.34 has provided strong support that sellers have repeatedly tested over the past seven days.
On the charts, this latest rebound has created a broadening descending wedge. Over the last four days the coin has seen a jump of over 15%, defying the uncertainty in the market.
It is most likely that a close above the pattern of recent trading will confirm an imminent bullish breakout. This breakout will be confirmed by a closing above the 20 and 50 day EMA.
In this situation, ADA will likely test the resistance of $0.48 before taking any action.
If the market continues to be negative, then the coin may test its limits. next main support level at $0.304.
Relative Strength Index closed finally above 50 to indicate a reduction in the selling pressure. The price movement had a divergence that was bullish.
The MACD crossed over to the bullish side, but they had not yet jumped above equilibrium. The bulls could make a big comeback with any close to the equilibrium.
The Funding Rates are on the rise
Coinglass data indicates that ADA’s funding rates across all exchanges were consistently in an upward trend over the course of last week. The gradual rise in bullishness was evident.
You can read more about it here Cardano’s [ADA] Price Prediction 2024-25
The Open Interest for ADA also increased over the course of the day, corresponding to the rise in price. This suggests that traders have been entering into new positions.
In the 60-day period, ADA has exhibited a 84% correlation to Bitcoin. Before entering any new positions, you should consider BTC sentiment.
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Source: ambcrypto.com