- Bears aggravated Cardano’s descent over the past few months as the crypto fear and greed index slipped into the ‘fear’ zone.
- Altcoins’ Funding Rates suffered a setback, but the ratio of long/short still offered some optimism for bulls.
In the final day of the week, the market has become more bearish. Cardano [ADA] After forming a bearish chart pattern, the stock continued to fall in its long-term trend.
Market uncertainty and recent patterns of pattern breaking triggered a rapid increase in the pressure to the downside.
The support level at $0.37 is a good place to start a reversal. This can cause some bullish trends and allow buyers to move up above the daily EMAs.
ADA is currently trading around $0.37, down about 2% from the previous 24 hours.
Can ADA Bulls Stop the Bleeding?
ADA struggles to maintain a high above the 50-day EMA green boundary for almost three months.
The crossover between the orange 20-day EMA and the blue 50-day EMA, which is bearish in nature, set up a downtrend that was quite extended.
The sellers tried to start an uptrend, but they failed to get above the range of resistance between $0.48 and $0.51. Accordingly, the daily chart of ADA showed a classic symmetrical triangular structure.
Recent declines below crucial resistance levels of $0.42 (then as support) have reaffirmed a bearish bias and confirmed a symmetrical breakout.
In less than 3 weeks, it lost 15% of its worth as the coin found support. It was traded at $0.37 by the time the press went to print.
A close convincingly above the immediate level of support can set ADA back on track to recover recent losses. Altcoins could face some resistance around the 50-day and 20-day EMAs.
Bulls can only start an uptrend in the near term if they close above these levels. This could help ADA retest $0.48 before likely reversing.
The ADA can immediately conduct a test if the bears continue their pressure. next Support level major at the $0.35 price mark
Relative Strength Index RSI was near the oversold area. This level is a good indicator of the selling power easing.
The MACD line and the Signal line were both below equilibrium for more than three months, and the bearish trend was quite extended.
This can stop the red candle streak temporarily.
The long/short ratio is a hope-keeper
ADA funding rates have seen a downward trend on the majority of exchanges in recent days due to market uncertainties. ADA’s long/short ADA/USDT ratio at Binance was 3.7 in the 24 hour period.
Is your portfolio green? Have you checked out your portfolio? ADA Profit Calculator
There are far more long positions as compared to short positions.
It could be a sign of a possible reversal in ADA’s current support levels. Nonetheless, the altcoin shared a 90% 30-day correlation with Bitcoin— so keeping track of BTC’s movements would be crucial to gauge ADA’s near-term potential.
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Source: ambcrypto.com