It was not until mid-2020 that Cardano [ADA] entered the good book owing to the much-awaited Shelley update. The sixth-largest crypto-asset started a fresh increase at the beginning of the month that led the way for it to climb the sixth position in the crypto ladder.
The bearish momentum continued to pull the altcoin market to undergo severe retracement over the past week. Will ADA survive the current downside pressure?
Cardano [ADA] fell by 6.74% over the last 24-hours pushing the price to $0.32. At the time of writing, the crypto-asset registered a market cap of $10.2 billion and a 24-hour trading volume of $2.38 billion.
Cardano [ADA] Daily Chart:
Cardano [ADA] price candles appeared to be oscillating between an ascending channel pattern as the market flipped bullish in the first week of the year.
As per convention, the pattern formation results in a bearish breakout following its completion. The rising gauge between the daily moving average, however, depicted an overall bullish picture. The Fib retracement highlighted crucial resistances and support level for the coin.
Buying Pressure Takes A Back Seat
MACD formed a weak bearish crossover below zero which has been in continuation since the past week. This essentially depicted that Cardano could see a correction in the near-term.
Owing to the back-to-back bearish onslaught, the Stochastic RSI fell to the oversold region. RSI also depicted an decreasing sentiment of buy-pressure as it looked to approach the 50-median line that has not been tested since the 27th of December 2020.
The above charts and technicals suggested a macro bullish outlook, however, the short-term bearish pressure cannot be negated.
Even as the selling pressure intensified, the crypto-asset is unlikely to sustain a damaging price run down.
Having said that, bears could still pull Cardano’s price to its nearest support level of $0.265. If this price level is not retained, the crypto-asset could further tumble to yet another crucial support point of $0.226.
It found significant resistances from $0.39, $0.43 and $0.49 levels respectively.