Cardano (ADA) Dips Under $0.4233: Will the Bears Continue to Rule?
July 25 2024 - 6:00AM
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The cryptocurrency market has seen a recent downturn, with Cardano
(ADA) experiencing a notable decline, dropping below the $0.4233
mark. This drop can be attributed to the recent shift in market
sentiment towards a bearish outlook. The critical question now is
whether this bearish momentum will continue or if a potential
rebound is on the horizon. This article examines the current market
position and technical indicators to offer a comprehensive analysis
of the impact of ADA’s price falling below $0.4233. It also
evaluates whether this negative momentum will persist or if a
potential reversal is on the horizon. In the past day, the price of
Cardano has dropped by 5.45%, trading at roughly $0.396 at the time
of writing. The cryptocurrency has more than $14 billion in market
value and $376 million in trading volume. Over the past day, there
has been a 5.35% decrease in ADA’s market capitalization and a
7.32% rise in trading volume. Current Market Overview: ADA’s Recent
Decline On the 4-hour chart, the price of ADA is currently bearish
and trading below the 100-day Simple Moving Average (SMA) after
successfully dropping below $0.4233. It is also important to note
that after this break, Cardano has been on a bearish trajectory
toward the $0.3389 support level. Also, the signal line of the
4-hour Relative Strength Index (RSI) indicator has fallen below
50%. This decline suggests that ADA could continue its current
bearish trend toward the $0.3389 support level. On the 1-day
chart, it’s evident that ADA’s price is currently bearish and has
significantly fallen below both the 100-day SMA and the $0.4233
support level. Since breaking below the $0.4233 support mark,
Cardano has consistently maintained a bearish trajectory toward the
$0.3389 support level and will potentially continue in this trend
for a while. Finally, it can be observed that the signal line of
the 1-day RSI indicator has also dropped below 50% and is currently
heading toward the oversold zone. This position of the RSI
indicator suggests a potential further decline for ADA. Potential
Scenarios: Will Cardano Rebound Or Continue Downward? If Cardano
can sustain its current bearish momentum to reach the $0.3389
support mark and close below, the price may continue to move
downward to test the $0.2388 support level. Should this level be
breached, the digital asset may experience further price drop
toward other lower ranges. Conversely, if ADA’s price rebounds at
the $0.3389 support level, it could start to move upward again,
heading toward the $0.4233 target. Additionally, when ADA breaks
above this level, the crypto asset could see further price gains,
testing the $0.5229 resistance level and possibly moving towards
even higher levels. Featured image from iStock, chart from
Tradingview.com
Cardano (COIN:ADAUSD)
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