Cardano’s technical indicators (ADA) offer a bearish outlook. The trend cannot be considered bullish unless the USD 2.33 zone is restored.
ADA has fallen since it hit an all-time high of $ 3.1 on September 2. So far it has fallen as low as $ 1.91 on September 21st.
Although the token has risen slightly since then, it is still trading below the resistance area of $ 2.33. This area is important as it was previously an all-time high in May.
This zone will serve as a support after the August eruption. However, this did not succeed as ADA broke underneath.
The technical indicators are also falling.
MACD is in negative territory and is decreasing. This means that the short term trend is slower than the long term trend.
The RSI is below 50. This is also a sign of a downtrend.
Finally, the supertrend line is bearish (red line). The indicator is created with absolute high and low prices. Since the ADA is below this, the trend is considered bearish.
The last time the line went bearish, the downtrend lasted about two months with ADA falling from $ 2.5 to $ 1.
Hence, the trend cannot be considered bullish unless ADA manages to retake the 2.33 zone.
Daily ADA / USDT Chart | Source: Tradingview
ADA / BTC
Trader @CryptoCapo_ outlined the ADA / BTC chart and stated that the token is likely to drop to 3100 Satoshis.
The source: Twitter
The ADA / BTC pair has a bearish outlook like the USD pair.
The pair broke below the ascending support line formed since early 2021. Previously this line helped the price to resume the uptrend twice (green symbol).
The fact that this line has been sustained throughout the uptrend, a break below it is a very bearish trend.
Additionally, the MACD and RSI provide the same bearish indicators as the USD pair. The MACD is in negative territory and falling while the RSI has fallen below 30. The latter shows even worse momentum than the ADA / USD RSI, which has just fallen below 50.
The next support is at 3,100 satoshis.
Daily ADA / BTC chart | Source: Tradingview
You can see the ADA prices here.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Beincrypto