Cardano‘s ADA price dropped by 4.5% in the last 24 hours, trading at approximately $0.351 during European trading hours. This decline invalidated the previous bullish pattern on the Cardano chart. If Bitcoin (BTC) does not move positively, ADA bulls may not be able to prevent further price drops.
Cardano (ADA) Analysis and Commentary
Last week, ADA‘s price was on the rise as market participants expected a breakout from a falling wedge formation, but with Bitcoin’s downward movement, ADA’s breakout was invalidated, and the altcoin‘s price fell to $0.3165. After this price collapse, ADA rose by 18% to test $0.37 but struggled to surpass this new resistance zone.
ADA’s Relative Strength Index (RSI 14) is 7 points above the oversold region, at 37, and below the RSI moving average. If ADA experiences more selling pressure, it could enter the highly volatile oversold region. If ADA can overcome Bitcoin’s negative market impact, its price could rise by 43% to return to $0.62.
Key resistance levels to watch on the upside are $0.46, $0.54, and $0.60. On the other hand, if the bears prevail, ADA’s price could fall to $0.24. Key support levels to monitor are $0.336 and $0.28.
Investors Expect a Rise According to LONG/SHORT Ratio
Despite what the charts indicate, Coinalyze data shows that the total LONG/SHORT ratio for ADA is 2.35, with 70% of investors in long positions and 30% in short positions. This suggests that market participants are optimistic about ADA’s long-term price performance and view these low prices as a discounted buying opportunity.
The Cardano team continues to develop the network ecosystem regardless of price fluctuations. One of the most significant developments is the upcoming Chang hard fork in a few weeks. This hard fork will give ADA holders voting rights and bring community governance to the Cardano Blockchain. Additionally, Cardano shines with its potential to revolutionize real-world asset collaboration with the Nairobi Securities Exchange (NSE).
