Cardano seeing high bearish sentiment as selling pressure on investors climbs

The cryptocurrency market has been on a recovery mode ever since the drastic price fall on 24 September, a price fall which saw most of the coins bleed by double digits. Cardano’s [ADA] price fell from $0.046 on 24 September to $0.0351 on 26 September and since then, the altcoin has been looking to break the key resistance at $0.0478, while its support is hinged at $0.037o.

At press time, Cardano was trading at $0.0392, with a rise of 2.92% on the 24-hour price chart, and its total market cap stood at $1.018 billion.

1-Day Price Chart

Source: TradingView

Looking at the 1-day price chart for ADA, the EMA ribbon indicator is converging above the candles on 23 September, indicating bearish sentiment. Usually the convergence of the EMA ribbon is followed by drastic price movement, which is shown by a downfall on 24 September. ADA needs to break above the EMA ribbon to see some bullish price momentum.

The RSI indicator shows that the selling pressure has been on the dominant side since 23 September, and the altcoin was oversold briefly on the 24th when the massive price drop happened. Presently, the RSI indicator suggests sellers have an upper hand.  The MACD line had a bearish crossover on 22 September and it has been moving below the signal line since, with the sentiment looking bearish.

Conclusion 

Cardano’s one-day price chart indicates bearish sentiment, with the selling pressure on the higher side. The altcoin needs to break above the immediate resistance to see a change in momentum.