Cardano (ADA) has been bearish for the last couple of months. After breaking multiple resistances way back in August, the token was unable to maintain its position below Ethereum.
Currently ranked at number 6 in the crypto market, the data from CoinMarketCap shows that the 24-hour trading volume of the token stands at 2.2 billion USD, rising by more than 30%. Furthermore, the market capitalization of the token rose by 5.16%, standing at $53 billion. The market dominance of the token rests at 2.05%.
The daily candle for Monday started at a price of $1.95, reaching a daily high of $1.613, followed by a daily low of $1.5. The token has been following a bullish trajectory for the year 2021, rising from 0.1274 USD to an ATH in early September.
Following the ATH, the ADA prices have been bearish, dropping by 23% in September, 7% in October, and 20% in November. Cardano’s bearish trajectory brought the position of the token from #3 to #6.
Cardano price analysis on the daily chart
The Cardano price analysis on the daily chart by TradingView paints a bearish picture. The 50-day and 100-day Moving Averages are above the price action, indicating a bearish price action in the long term.
Also, the prices rest in the lower end of the Bollinger Bands, and traders cannot expect an upward movement since volumes are not enough to take the prices higher.
The MACD indicator shows that the MACD line and the signal line are very close to each other. Once the trend is bearish, the histogram has also turned red, filled with red bars.
The RSI levels have fallen below the 50-level as the gradient is negative. The sellers are still in control of the price action, and bulls are kept at bay.
Conclusion
Cardano is definitely a promising token to hold, but it seems that the bull is no longer in control of ADA prices. However, the smart contracts platform is definitely one of the most promising DeFi protocols in the crypto world.