Connect with us
Active Currencies 14317
Market Cap $2,553,757,158,563.30
Bitcoin Share 51.61%
24h Market Cap Change $2.75

Cardano finds some support at $0.36, but the downtrend remains unbeaten

2min Read
Cardano finds some support at $0.36, but the downtrend remained unbeaten

Share this article

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

  • Cardano sees some relief at $0.36
  • Dead cat bounce or can the bulls drive ADA back above $0.4?

At the time of writing, Bitcoin [BTC] was headed higher toward the $19.6k resistance. Over the weekend the price had managed to defend the $19k support. While Bitcoin’s hopes of a move past $19.6k remain alive, Cardano bulls might hold some hope as well. However, a reversal did not appear likely.


Here’s AMBCrypto’s Price Prediction for Cardano [ADA] in 2022


A recent article highlighted the importance of the $0.4 area from a technical perspective. The higher timeframe market structure was bearish, and new lows were likely for Cardano.

The fall below $0.4 was ominous, more losses to come?

Cardano finds some support at $0.36, but the downtrend remained unbeaten

Source: TradingView

The Bollinger bands (blue) widened over the past week as ADA fell below the $0.41 support level. In the past few days, the lower band did not see a halt in the price’s descent. However, this could have changed at the $0.36 level.

At $0.363, Cardano halted its descent. The daily Relative Strength Index (RSI) had plunged to 23.4. This low value showed extreme oversold conditions, and a bounce was likely sooner or later. How high can this bounce go?

The 20-period moving average (orange) had confluence with the $0.41 horizontal level. The small belt between $0.416 and $0.403 highlighted an inefficiency on the price charts, and was likely to be filled in the coming days. Hence, short sellers can look for entries around that area.

To the south, another support level lay at $0.336, and bears can look to take profit near this level.

Funding rate no longer strongly bearish

Cardano finds some support at $0.36, but the downtrend remained unbeaten

Source: Santiment

The active addresses count has steadily declined in the past month. Moreover, last week’s plunge below the $0.4 bullish bastion saw the funding rates plummet as well. Futures traders turned strongly bearish and piled in to short positions.

At the time of writing, the funding rate was just above 0%, which suggested a more neutral outlook in the futures market. Combined with the technical findings, a bounce to $0.4 can be anticipated.

Share

Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.