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Cardano [ADA] Technical Analysis: Bear holds strong on to the token’s future

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Cardano [ADA] Technical Analysis
Source: Pixabay

The eleventh-largest cryptocurrency on CoinMarketCap, Cardano [ADA] exhibited a uniform price during the first part of the January 20. A gradual decline in its valuation was noted later in the day followed by a steady surge during the first half of the next day. Cardano developer, Charles Hoskinson, hosted his latest impromptu AMA session last week, disclosing the launch of a revamped Daedalus wallet structure in its 1.5 version, which would aid the coin’s scaling up the process.

At the time of writing, ADA held a market cap of $1.110 billion. The coin was priced at $0.043 and the volume of coins traded accounted for over $16.5 million, with a decline of 0.89%.

1-hour

Source: Trading View

Source: Trading View

The uptrend registered by the coin during the one-hour period tallied from $0.045 to $0.046 and a downtrend from $0.046 to $0.043. The first resistance was marked at $0.044 and the immediate support at $0.042.

The Bollinger Bands indicator exhibits a contraction in the graph, depicting a decline in price volatility of the market.

The Awesome Indicator depicts a bearish pattern in the coin’s price, with the lines turning green.

The Klinger Oscillator shows a bearish market trend for the coin.

1-day

Source: Trading View

Source: Trading View

The one-day ADA graph shows an uptrend from $0.030 to $0.041 in its price, accompanied by a whopping downtrend from $0.077 to $0.046. The coin has faced an immediate resistance at $0.05 and support at $0.037.

The Parabolic SAR indicator traces a bearish market pattern for the coin, with the series of dotted line aligned above the candles.

The MACD indicator for the same time period also forecasts a bearish pattern, with the MACD line below the signal line.

The Chaikin Money Flow graph lies below the zero-line, which depicts that the price of the coin is following a bearish trend with money flowing out of the market.

Conclusion

As indicated by the indicators MACD, CMF and Parabolic SAR on the one-day chart and the AI and Klinger Oscillator on the one-hour chart, the future of ADA still lies in the bear’s realm.



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Chayanika holds a Journalism degree and is currently working with AMBCrypto. She is inquisitive about everything that the Blockchain Technology has to offer.

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