Cardano suffered a decline of around -37% this summer of 2023. Let’s see the future outlook for the ADA price.
Status of Cardano (ADA)
After rejecting $0.35 in mid-July 2023, the price of Cardano continued its decline to $0.24. This level corresponds to its last low point since its ATH. From a Chartist perspective, ADA appears to form an inverted cup with handle. This figure suggests a possible decline to come. Cardano is now below its 50 and 200 day moving averages, trending and crossing downwards. This indicates that the cryptocurrency trend is indeed bearish. On the oscillator side, Cardano’s RSI and daily MACD indicate persistent selling pressure. However, it is interesting to highlight the formation of a bullish divergence. Once confirmed, this will be encouraging for a potential bullish reversal.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Currently a trainer at Family Trading, a community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around financial markets in a professional and warm atmosphere.
It is interesting to observe the CVD (Spot) of Cardano. Indeed, this indicator has been diverging since the beginning of August, with the fall in ADA. This phenomenon suggests that buyers are interested in Cardano despite the drop in its price. Thus, it can be a comforting factor for a possible trend reversal.
Focus on derivatives (ADAUSDT)
The latest increases in Cardano have visibly caused the drop in its open interest. However, we can see that the data relating to liquidations are not significant. Profit taking or lack of conviction… what we can understand is that the sellers seem to have capitulated.
Hypotheses for the price of Cardano (ADA)
. If the price of Cardano returns above $0.26, we could anticipate a bullish continuation up to the $0.28 level. The next resistance to take into account at this stage will be the psychological threshold of $0.30.
. If the Cardano price gives way on the support of $0.24, we could envisage a bearish continuation up to $0.22. Unfortunately, if this level does not hold, this could lead it, more or less quickly, towards $0.20.
Conclusion
Cardano is in a still bearish structure. However, in addition to the rebound on its support, numerous indicators suggest that it could soon be revised upwards. Obviously, nothing has been done yet. This is why it will be important to carefully observe the price reaction on the different identifiable levels to confirm or not the different hypotheses made. Beware of potential “fake out” and “market squeeze” in each situation. It should also be remembered that these scenarios are based mainly on technical analysis. The price of cryptocurrencies may change more or less quickly, depending on other more fundamental factors.
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