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Altcoin traders have suffered heavy losses in the Bitcoin slump and their long-term bullish structure is breaking down. Waves of selling reminiscent of the March crash have weakened for now. However, the prospect of Bitcoin price consolidating $27,600 as resistance suggests that the sell-off in altcoins may resume. So what’s next for one of the biggest altcoins?
Cardano (ADA)
Cardano (ADA) price is trading at the junction between an important resistance and support. Accordingly, we are likely to see a decisive move soon. With many altcoins forming similar setups, there are strong signals that volatility will soon increase in altcoins. While long-term readings support a continued price decline, whether the price breaks out of this zone in the short term will determine the direction of the trend.
Technical analysis on the weekly timeframe points bearish for ADA Coin. The main reason for this is the divergence above the resistance area with an average price of $0.41 and subsequent closes below it. This move confirms the bearish possibility as it invalidates the previous upside breakout.
ADA Coin Price Prediction
The RSI made an unsuccessful break above 50, which supports a bearish scenario. If the RSI value is above 50 and the trend is upwards, the bulls have the advantage, but in the opposite scenario, we see the bearishness starting to gain momentum.
In the short term, technical analysis on the six-hour timeframe shows that ADA price has broken below a downside resistance line since April 15. This suggests that the decline will continue if the resistance area is not breached.
Currently, ADA is trading just above the $0.36 support level. This support consists of a horizontal support area and the 0.618 Fibonacci retracement support level. If the Bitcoin price can break the resistance at $27,600 early, this area could remain the local bottom as it has been in the past. However, its loss in the opposite scenario would lead to a rapid decline. A break to the upside will allow targeting $0.41.
However, strong bearish signals suggest that a pullback towards $0.3 is more likely. Of course, technical analysis is not a sphere that shows the future, but we can say that volatility will soon increase and the direction will become clear.
