Cardano Can Expect A Reversal If Bulls Defend This Price Zone
It has not been a good week for Cardano, as the price dipped by 11% during that time. At the moment, ADA is consolidating on its price chart. Over the last 24 hours, ADA depreciated slightly by 0.2%, thereby confirming lateral trading on the chart.
Although the Cardano price is moving south, the altcoin seems to slow down its losses. The technical outlook of the altcoin maintained a bearish structure as the coin was still struggling to recover from its weekly loss. Demand for the altcoins declined, as did accumulation.
Bulls still have a chance to reverse the price action, provided the altcoin manages to trade above a particular price zone. With Bitcoin losing its bullish strength over the past few days and entering the $23,000 zone, most altcoins have travelled south on their respective charts.
For ADA bulls to return, broader market strength is still required. The market capitalization for ADA fell, which indicated increased selling pressure in the market.
Cardano Price Analysis: One-Day Chart
ADA was trading at $0.361 at the time of writing. In the past week, the coin lost an important support level of $0.363. Overhead resistance for the coin stood at $0.384, and moving above that mark will push ADA to trade near $0.401.
As the altcoin continues to display higher highs and lower lows, it can be confirmed that the overall structure of the asset is bearish. If the bulls manage to break past the $0.360 zone, then the price might note a recovery or reversal.
The closest support line for the altcoin stood at $0.331. The amount of Cardano traded in the last session declined, which indicated increased selling strength.
ADA has been correcting itself ever since it visited the overbought zone at the beginning of this year. Buying strength had tried to recover in February, but the bulls gave up. The Relative Strength Index fell below the 50-mark, which meant that sellers outnumbered buyers at the time of writing.
On the same note, the ADA price fell below the 20-Simple Moving Average (SMA) line as sellers were driving the price momentum in the market. If the price moves above the $0.360 zone, then Cardano might attempt to rise above the 20-SMA line, which would cause a possible price recovery.
In accordance with the other technical indicators, the Awesome Oscillator, which indicates the price momentum, was also negative. The indicator formed red signal bars, which were sell signals for the altcoin.
This indicates that the price of the asset could dip further. Bollinger Bands measure price volatility and fluctuation. The bands remained parallel and wide; this meant that the asset might trade within that range with possible price fluctuation.