After an extended bullish run, the cryptocurrency market seems to have hit a red wall. Prices across the board fell rapidly as almost all the major altcoins followed Bitcoin’s footsteps. IOHK’s Cardano, which had been enjoying a stellar September fell into the bear trap with millions wiped off its total market cap.
Cardano’s latest fall came at a time when users were expecting it to cross the $3 mark. At press time, ADA was trading for $2.34 with a reduced market cap of $74.04 billion. An 11 percent price drop lowered the cryptocurrency’s daily trading volume to $11.3 billion. This trading volume was enough to let it maintain its third rank on the cryptocurrency charts.
Cardano 1 hour:
Cardano’s price action over the past 24-hours has been representative of the entire cryptocurrency market. The bear’s takeover caused immediate price supports to crumble with Cardano’s settling near the $2.2 mark. The price capitulation period still seems to be unclear as the red candles had overtaken their green counterparts.
Relative Strength Index: Cardano’s hourly RSI struggled to break away from the oversold zone as the graph slowed on its ascent. The low hold meant that more and more users were selling their ADA rather than hodl it.
Chaikin Money Flow: The CMF in the short term was surprisingly bullish with a k shaped curve forming upwards. This indicated the strong capital flow into the Cardano market.
Bollinger bands: The sudden price drop created a massive Bollinger cloud, the likes of which have been unseen for weeks. Both the upper and lower Bollinger bands converged towards one another after an exciting 12 hours.
Cardano 1 day:
Cardano’s price crunch was visible in full view on the long-term chart with strong red candles dominating the past week. After hitting all-time highs towards the end of August, Cardano’s current bearish predicament was evidence of a market reigning in its assets.
Chaikin Money Flow: In the long term, the CMF had fallen from its perch above the zero line. If the cryptocurrency continues on the same path, Cardano would soon crash below it for the first time since July.
Relative Strength Index: The panic caused by the bear run was enough for a large number of investors to sell their assets. A strong RSI would contribute to a confidence boost in the ADA ecosystem.
Bollinger bands: The Bollinger bands fell into a parallel restricted movement with a large cloud mouth. Cardano’s movement in bearish lands may cause the cloud to open up and be unable to contain the red candles