November 26, 2022

Cardano Price Analysis: ADA Breaks Below $1.5, Now Facing Critical Support

2 min read

Yesterday’s market crash pushed ADA listed below $1.5. Since composing these lines, ADA deals with an essential support level at $1.3. In case that this level breaks down, ADA is likely to retest $1.

Secret Support levels: $1.3, $1

Key Resistance level: $1.5, $1.7

Cardano’s native token has seen a downtrend correction considering that early September, following striking the current all-time high at $3.09, according to CoinGecko.

Sadly for ADA’s holders, the most recent market crash drove it listed below the key support level at $1.5 down to $1.3. Rate is currently having a hard time to maintain the crucial assistance, and ADA may continue to be up to $1 if the current level isn’t able to hold.

ADA has actually remained in a high and aggressive bearish pattern that began months before this market crash. For that reason, the bears are in control of the marketplace. In order to begin seeing a bullish reversal, the cost needs to recover the $1.5 level, which has become resistance following the weekend crash.

Chart by TradingView Technical Indicators Trading Volume:

Increasing volume as rate declines is a bearish sign. Best to keep away from ADA until there are indications of a possible turnaround, followed by an enormous quantity of volume. RSI: The everyday RSI has actually been hovering just above 30 points or above the oversold area since the correction started in September. This puts ADA in a clear bearish pattern. Nevertheless, this most current drop in rate did not make a lower short on RSI, indicating that bears might end up being tired. In addition, the oversold location neighbors.

MACD: The MACD on the daily timeframe is bearish with expanding moving averages and an unfavorable histogram. This has to reverse quickly; otherwise, the $1.3 support level may be under substantial pressure.

Chart by TradingView Predisposition

The existing Cardano (ADA) predisposition is bearish. Given that introducing wise contracts on Cardano, the pattern has actually been bearish for over 3 months, and this latest market crash even made it harder for ADA to discover a way out of this sag.

Short-Term Prediction for ADA Price

If ADA can not stop the downtrend at $1.3, the price will probably drop to retest the next substantial support around $1. The bears dominate the market currently.

Keeping in mind the existing market conditions, it’s difficult to see how ADA can reverse course at this time. In the best-case circumstance, ADA can consolidate here and try a breakout later on in December.