See More

Here’s What Cardano (ADA) Bulls Need to Do to Stave off 30% Drop

2 mins
Updated by Ryan James
Join our Trading Community on Telegram

In Brief

  • Cardano's (ADA) price has fallen under a resistance trend line since December, being rejected two days ago.
  • The weekly and daily time frame both give a bearish outlook, predicting that more downside is expected.
  • Despite the bearish ADA price prediction, a breakout from the short-term resistance can trigger a bounce.
  • promo

The Cardano (ADA) price has made numerous unsuccessful breakout attempts above a long-term horizontal resistance area.

Cardano follows a short-term descending resistance trend lien and is at risk of a drop below a short-term support level.

Cardano Falls After Rejection

The technical analysis of the weekly time frame shows that ADA has made six unsuccessful breakout attempts above a long-term horizontal resistance area since November 2023. These all created long upper wicks (red icons), considered signs of selling pressure. 

This week, the ADA price made an unsuccessful bounce attempt. This led to another long upper wick and bearish candlestick (red circle). 

Cardano (ADA) Price Movement
ADA/USDT Weekly Chart. Source: TradingView

The weekly Relative Strength Index (RSI) leans bearish. Traders utilize the RSI as a momentum indicator to assess whether a market is overbought or oversold and whether to accumulate or sell an asset.

If the RSI reading is above 50 and the trend is upward, bulls still have an advantage, but if the reading is below 50, the opposite is true. Even though it is above 50, the indicator is in a downward trend. 

ADA Price Prediction: Is $0.40 on the Cards?

The technical analysis of the daily time frame gives a similarly bearish outlook because of the price action and RSI.

The price action shows that ADA has decreased under a descending resistance trend line since December 14, 2023. More recently, the trend line rejected the price on January 30 (red icon).

Currently, ADA is breaking down from the $0.48 horizontal support area. If Cardano falls below it, it can drop 23% to the next closest support at $0.38.

The RSI supports this possibility since it was also rejected by 50 (red circle).

ADA Price Prediction
ADA/USDT Daily Chart. Source: TradingView

Despite the bearish ADA price prediction, a breakout from the resistance trend line can trigger a 30% ADA increase to the next resistance at $0.63.

For BeInCryptos latest crypto market analysis, click here.

Top crypto projects in the US | May 2024

Trusted

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Valdrin-Tahiri.jpg
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
READ FULL BIO
Sponsored
Sponsored